The US Senate on April 10 voted to repeal the National Labor Relations Board’s new joint employer rule, but Reuters reported that President Joe Biden has vowed to veto the vote.
The Senate passed the resolution by a 50-48 vote with Sen. Joe Manchin, D-West Virginia; Angus King, I-Maine; and Kyrsten Sinema, I-Arizona, voting with Republicans. However, a two-thirds vote is needed to overcome a veto.
“This rule, crafted by out-of-touch D.C. bureaucrats, would negatively impact millions of workers and thousands of businesses if left in place,” US Senator Kevin Cramer (R-ND), a cosponsor of the bill, stated in a press release. “It represents another attempt by this administration to pursue unnecessary and costly regulation at the expense of our nation’s workers and economy. Today’s vote repeals this egregious rule and protects the franchise business model in America.”
The NLRB’s new joint-employer rule had already been vacated by a federal judge in March, though the NLRB could appeal the ruling.
The new rule, finalized by the NLRB in November 2023, would make it easier for client firms and staffing firms to be joint employers, according to an analysis by SIA. “As such, both can be held liable for one another’s alleged labor law violations and be obligated to collectively bargain with a group of union-represented employees,” the analysis states.
In addition, the new rule would affect franchise companies, and some members of Congress focused on that in their opposition to the rule.
“The joint employer rule has caused confusion for franchise owners for years,” Manchin said in a press release. “Telling them they could be held liable for actions taken by businesses with their brand, potentially subjecting them to corporate control.”
