Press Releases

Chairman Chabot Applauds E&W Hearing on Expanded Joint Employer Standard

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Washington, July 12, 2017 | comments

WASHINGTON - Today, the Education and the Workforce Committee held a hearing to examine how small businesses have been negatively affected by the National Labor Relations Board’s (NLRB) expanded joint employer standard put into place during the Obama Administration.

“For over two years, small businesses have been telling us that the Obama-era changes to joint employer standard were bad news, now we have even more proof. The rule has harmed the small business owner’s ability to hire more workers, or even to open a new business in the first place,” said House Small Business Committee Chairman Steve Chabot (R-OH).

The House Committee on Small Business has been active on this issue since it arose in 2015. The Committee held a roundtable in April 2015 and then in March 2016 held a hearing on the issue entitled, “Risky Business: Effects of new Joint Employer Standards for Small Firms” to examine how the expanded rule impacted small businesses. The Committee found that the new standard led many large companies to either assert more control over small businesses they contract with or end business relationships entirely.

“Today’s Education and the Workforce hearing builds on the groundwork our Committee laid over the past two years and it is good to know that House Republican Leadership is continuing to fight unnecessary and burdensome regulations at every turn,” Chairman Chabot added.

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