U.S. Chamber of Commerce
U.S. Chamber Criticizes NLRBfs Re-write of Joint-Employer Standard
Thursday, August 27, 2015 - 3:30pm
WASHINGTON, D.C. -- The U.S. Chamber of Commerce today
expressed strong opposition to the National Labor Relations Board's (NLRB)
issuance of its decision in Browning Ferris Industries, which radically
upsets the NLRB's longstanding "joint employer" standard.
"This decision has broad implications as it appears to upend decades of
settled law defining who the employer is under the National Labor Relations
Act," said Randy Johnson, senior vice president for Labor, Immigration and
Employee Benefits at the Chamber.
For the last 30 years, under the National Labor Relations Act ("NLRA"), two
separate business entities have been considered "joint employers" if both
entities exercise direct and immediate control over the terms and conditions of
employment of the same workers. This means that both entities share the ability
to hire, fire, discipline, supervise and direct the workers in question. The
test announced today in Browning Ferris discards this well-established
standard in favor of one in which almost any economic or contractual
relationship could trigger a finding of joint employer status.
"Because of the array of obligations and liabilities that attach with a
finding of joint employer status, the Browning-Ferris case could lead
many employers to significantly alter or limit the contractual agreements into
which they enter," continued Johnson. "This will reduce employer flexibility and
competition at a time when the economy continues to experience anemic economic
growth."
"By tossing out this current test, the NLRB's actions today will subject
employers to increased uncertainty, liability for workplaces that they don't
actually control, and ramped up pressure tactics to ease union organizing," said
Glenn Spencer, vice president of the Chamber's Workforce Freedom Initiative,
which earlier this year issued a report on the joint employer issue entitled,
"Opportunity
at Risk."
The U.S. Chamber of Commerce is the world's largest
business federation representing the interests of more than 3 million businesses
of all sizes, sectors, and regions, as well as state and local chambers and
industry associations.