Another Obama Legacy Damaging Franchise Businesses Faces Extinction

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One of the more oppressive interpretations of a regulation and one that could have ended up destroying franchise businesses appears to be on the chopping block. The rule was an Obama gift to Big Labor.

NLRB MIGHT WIPE AWAY ANOTHER OBAMA LEGACY

The Obama administration did away with the long-held interpretation of the joint-employer standard and made the parent companies liable for any labor violations committed by franchises or subcontractors, according to the Washington Free Beacon.

The proposal before the National Labor Relations Board is to return to the original interpretation. It would treat parent companies as uninvolved third parties.

“Indirect influence and contractual reservations of authority would no longer be sufficient to establish a joint-employer relationship,” the agency said. “The National Labor Relations Act’s intent is best supported by a joint-employer doctrine that does not draw third parties, who have not played an active role in deciding wages, benefits, or other essential terms and conditions of employment, into a collective-bargaining relationship for another employer’s employees.”

It is one more pro-business policy that will encourage franchise expansion.

CEI’s says the rule will create greater certainty for businesses, allowing employers to better plan for the future.

Senator Cotton said that “by reversing the Obama-era Browning-Ferris standard, the National Labor Relations Board’s proposed rule returns to the time-honored definition of ‘joint employer.’

It will be a big plus for fast food franchises like McDonald’s and a disappointment for unions who hoped for big payoffs on every local issue.

 


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