When Barack Obama reigned, he was responsible for a rule that made parent companies responsible for any grievance and alleged violation that occurred in any franchise or by subcontractors. It threatens to destroy the concept of franchising businesses.
A parent company can’t survive the liability they would have from the many franchises which operate independently.
The President has been trying to get rid of the ruling, which overburdens franchises.
Free Beacon reported Republican Congressional leaders now see a new federal regulation as the best way to overturn it and they are throwing their weight behind one that will.
Sen. Lamar Alexander (R., Tenn.), chairman of the Senate Committee on Health, Education, Labor, & Pensions, along with party leaders in the House and Senate, sent a letter to the National Labor Relations Board asking it to restore joint employer standards that protect franchise businesses.
The NLRB, the top federal labor arbiter overseeing workplace disputes and union elections, is considering a formal rule that would shield parent companies from being held liable for labor violations committed by franchisees or subcontractors. That standard stood for decades until the Obama NLRB’s 2015 Browning Ferris Industries (BFI) ruling.
The ruling before Obama had been in existence, and working quite well, for decades.
“The Board’s BFI joint employer standard is the biggest attack on opportunities for American small businessmen and women to make their way into the middle class that anyone has seen in a long time,” Alexander said in the letter to Trump NLRB Chairman John Ring. “The Board’s proposed standard will preserve the American Dream and economic benefits for millions by providing clear rules of the road.”
The liability standards of the Obama administration have been a tremendous burden on businesses and tip the scales too far in the wrong direction.