Senators want say before NLRB changes joint-employer standard — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Senators want say before NLRB changes joint-employer standard

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in Employment Law,Human Resources

Pending National Labor Relations Board cases that will probably deem national corporations and their franchisees joint employers “could destroy a small business opportunity for more than 700,000 Americans,” according to Sen. Lamar Alexander (R-Tenn.), chair of the Senate Committee on Health, Education, Labor and Pensions.

Since 1984, the joint-employer standard has been whether a parent company exerts “a significant and direct degree of control” over franchise operations. The NLRB’s new standard would be based on whether the larger entity “has the potential” to control the terms and conditions of employment at a franchise. The distinction is important because the new standard would make it easier for litigious employees to go after the deep pockets of parent companies.

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