The Association for Corporate Growth has joined the Coalition to Save Local Business, a group focused on thwarting the National Labor Relations Board’s effort to expand the definition of a joint employer. The coalition released a press release on Tuesday announcing its formation:
WASHINGTON – In direct response to significant regulatory overreach by the National Labor Relations Board (NLRB), a group of local business owners and industry leaders launched a comprehensive lobbying, public affairs, media relations and grassroots campaign to preserve the existing joint employer standard. The Coalition to Save Local Businesses (CSLB) seeks to inform Members of Congress of the potentially devastating impact that redefining this standard would have on their businesses and the overall U.S. economy. The coalition will ask Members of Congress to support legislation that would codify the decades-long and widely-accepted definition of what constitutes a joint employer.
“To me, this is not a Republican or Democratic issue. This is an issue about hard working people retaining their ability to own, operate, and manage their own local business. If the NLRB decides to change the definition of who is the employer, it will certainly impact the way I do business, and could have very negative consequences,” said coalition co-chair Matthew Patinkin, a franchisee-owner of local Auntie Anne’s Pretzel’s, Red Mango Frozen Yogurt, and Jamba Juice stores.
At issue is the NLRB’s effort to expand the definition of joint employer, even though the current standard has long been recognized by the courts, businesses, IRS, SBA and even the NLRB itself. Currently, to be deemed a joint employer, two or more companies must exercise significant operational and supervisory control over an employee. However, despite decades of common law and practice, the NLRB is considering expanding that interpretation and applying a broader “economic realities” test.