Sen. Marshall and Rep. Comer Introduce Save Local Business Act

Sen. Marshall (R-KN) and Rep. Comer (R-KY) introduced legislation that would clarify the definition of joint employer, which they argue has been expanded and has created confusion for small businesses. This legislation, Save Local Business Act, would counter the joint employer provision of the Protecting the Right to Organize Act (PRO Act).  The PRO Act would codify the joint employer standard adopted by the National Labor Relations Board. The standard allows for two or more employers to be considered a joint employer of a worker if there is shared control of the worker’s essential terms and conditions of employment.  The Save Local Business Act would amend the National Labor Relations Act and the Fair Labor Standards Act to make clear that an employer may be considered a joint employer in relation to an employee only if such employer directly and immediately exercises control over the essential terms and conditions of employment.  Marshall and Comer argue that joint employer has resulted in increases in operational and legal costs, less compliance assistance and fewer opportunities to create jobs. They say their bill would provide clarification, certainty for small businesses and strengthen worker protections.