The Obama administration is still hard at work dismantling the economic engine the late President Ronald Reagan carefully put in place 30-plus years ago, and this time it’s using the National Labor Relations Board to do it.
The NLRB is expanding the definition of the word “employee.” Check it out:
From The Free Beacon:
The National Labor Relations Board, or NLRB, issued a decision holding national corporations accountable for the actions of subcontractors and franchises that operate under the company umbrella. The Browning Ferris v. Teamsters Local 350 decision overturned the longstanding precedent that corporations were not accountable for the labor practices of franchisees because the latter have autonomy over day-to-day operations.
“We are persuaded that the current joint-employer standard is not mandated by the Act and that it does not best serve the Act’s policies,” the board said in a 3-2 party-line decision. “The Board may find that two or more entities are joint employers of a single work force if they are both employers within the meaning of the common law, and if they share or codetermine those matters governing the essential terms and conditions of employment.”
Numerous business groups and small-business owners criticized the decision, saying it would kill the franchise model.
“This decision throws a hand grenade at any small business that operates within the franchise model, serves as a subcontractor or engages in partnerships. If it is allowed to stand, it will have a chilling effect on existing and aspiring entrepreneurs, dampen economic activity and cost U.S. jobs,” Ciara Stockeland, owner of MODE retail clothing stores, said in a press release from the Coalition to Save Local Businesses.
The board defended the decision, saying in a release that “its previous joint employer standard has failed to keep pace with changes in the workplace and economic circumstances.”