Committee on Education and the Workforce - Contact: Press Office (202) 226-9440
https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=401928

Today, at a press conference with small business owners, members introduced the Save Local Business Act (H.R. 3441). The legislation, sponsored by Subcommittee Chairman Bradley Byrne (R-AL), rolls back the extreme joint employer scheme to protect American jobs and entrepreneurship. The bill has received bipartisan support with 29 co-sponsors.

Upon introduction, members released the following statements:

“Federal labor policies should be focused on benefiting workers and helping small businesses grow instead of creating barriers that limit opportunity,” Chairman Byrne said. “Also important, Congress – not unelected federal bureaucrats – should set our nation’s labor policies through statute instead of executive fiat. Under this bipartisan legislation, workers, and the businesses they work for, will be given much needed clarity and certainty. I am especially pleased our legislation has earned support from both sides of the aisle, and I am committed to continuing to build momentum as the bill moves through the legislative process.”

“Right now, local employers across the country face an enormous amount of uncertainty because of a vague and confusing joint employer standard,” said Rep. Virginia Foxx (R-NC), chairwoman of the House Committee on Education and the Workforce. “Congress cannot sit on the sidelines while this harmful scheme threatens to destroy jobs and make it harder for entrepreneurs to achieve the American Dream of owning a business. I commend Congressman Byrne for his leadership in this bipartisan effort to protect jobs and the spirit of entrepreneurship in local communities.”

“Owning and maintaining a small business has been part of the American dream for generations,” Rep. Henry Cuellar (D-TX) said. “We must ensure that our small businesses and franchises receive fair treatment from the government, and not confusion and arbitrary regulations that harm them. I have heard from small business owners throughout my district and the country, and it is clear that the NLRB’s joint employer decision was a major threat to the life of the franchise industry and the dream of business ownership for millions of Americans. The Save Local Business Act will provide our nation’s small and franchise businesses the certainty necessary to grow and invest in the future. I encourage my colleagues from both parties to support local businesses by supporting this legislation and restore the traditional joint employer standard as the law of the land.”

“The Obama administration repeatedly pursued regulatory policies that harmed workers and small businesses, and the misguided joint employer decision is a prime example,” said Rep. Tim Walberg (R-MI), chairman of the Subcommittee on Health, Employment, Labor, and Pensions. “It threatens to upend small businesses, undermine their independence, and put jobs and livelihoods at risk. This bipartisan bill restores a commonsense framework that will provide clarity to small businesses and allow workers and entrepreneurs to freely pursue their dreams.”

“Small businesses are the backbone of our economy,” Rep. Luis Correa (D-CA) said. “All across our country, small businesses enrich communities and employ the bulk of Americans. We must do everything we can to support small business entrepreneurs. Anyone willing to take on the risks and responsibilities inherent in owning a business deserves our support.”

BACKGROUND: The Save Local Business Act amends the National Labor Relations Act and the Fair Labor Standards Act to restore the commonsense definition of what it means to be an employer. The legislation clarifies that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers.

For fact sheet, click here.

For bill summary, click here.

For bill text, click here.