House passes bill to roll back NLRB 'joint employer' decision

The House of Representatives yesterday voted 242-181 to approve legislation (H.R. 3441) that would amend the National Labor Relations Act and Fair Labor Standards Act to clarify that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers. The bill would roll back a 2015 National Labor Relations Board decision to consider two separate entities joint employers of the same employees if they have any degree of indirect or reserved control over matters governing the essential terms and conditions of employment. The Coalition to Save Local Businesses, whose members include the AHA, supports the bill. “The coalition is confident that this bill strikes the right balance by providing much-needed clarity for local business owners, while also protecting employees by ensuring the flexibility needed to hold accountable any offenders acting in bad faith,” CSLB Executive Director Michael Layman said when the bill advanced out of committee last month.