Catherwood LibraryILR School

House Republicans recently introduced the Save Local Business Act, which would protect companies from liability in the event that a subcontractor commits a labor law violation. This would roll back the NLRB's controversial 2015 decision that a company is a joint employer with a subcontractor if it has real or reserved indirect control over employees, and change the definition of an employer in the NLRA and the FSLA. Under the new legislation, a company that is considered a joint employer would have to have actual, direct, and immediate control over employees. While supporters of the bill say that the current joint employer standard hurts franchises and small business, opponents believe that removing companies from liability will lead to an increase in businesses evading labor laws by using subcontractors.