Press Releases

WASHINGTON – This week, House Committee on Small Business Chairman Steve Chabot (R-OH) sent a letter to two House Education and the Workforce Subcommittees in support of H.R. 3441, the “Save Local Business Act,” of which he is an original co-sponsor. The National Labor Relations Board (NLRB) expanded its definition of the joint employer standard in 2015, creating confusing and new challenges for small businesses that want to work with other small and large firms to expand their companies.  

“Small businesses have been hurting under this rule for the last two years and it’s time we put an end to it. Under the new standard, a potential small business owner may avoid buying a franchise because of the risk of being punished for the actions of a franchiser. It has also created a lot of confusion and unnecessary challenges for job creators that just want to grow their companies,” said Chairman Chabot. “This legislation will restore certainty to America’s small business owners and their employees so that they can continue to operate their businesses locally and independently.”

As Chairman of the House Committee on Small Business, Chairman Chabot has heard firsthand how the new joint employer standard threatens small businesses. The Committee held a roundtable in April 2015 and in March 2016 held a hearing on the issue titled, “Risky Business: Effects of new Joint Employer Standards for Small Firms” to examine how the expanded rule impacted small businesses.