NLRB’s Actions Upend the Joint-Employer Standard

NLRB’s Actions Upend the Joint-Employer Standard

The National Restaurant Association issued the following statement regarding the National Labor Relations Board’s ruling in the Browning-Ferris Industries case. The 3-2 party-line decision – in which the Board ruled that a staffing agency can be considered a joint employer – has broad implications across several industries, including restaurants.

“While we continue to review the NLRB’s ruling, it appears that once again the Board is stacking the deck against small businesses,” said Angelo Amador, Senior Vice President of Labor and Workforce Policy and Regulatory Counsel, National Restaurant Association. “The Board is overturning years of established law that has worked to help grow business and feed our economy. The NLRB is already using its new rationale to dismantle the franchisor-franchisee model, which would stifle entrepreneurship and obstruct small businesses’ ability to continue to create jobs in an increasingly challenging economic and regulatory environment.

“Our industry is the nation’s second-largest private sector employer, and 90 percent of restaurants are owned by small business men and women. Our industry relies on the vision, innovation and risk-taking of our franchisees to provide opportunities to millions of people. The decision to upend the joint-employer standard will have dire consequences on franchisees’ decisions to grow and expand their businesses, jeopardizing economic growth in communities across the country.”

(Source: National Restaurant Association)

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