Press Releases

Chairman Chabot Disappointed in NLRB’s Decision to Allow Joint Employer Rule to Stand

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Washington, March 6, 2018 | Sarah Althouse | comments

WASHINGTON – This week, House Committee on Small Business Chairman Steve Chabot (R-OH) sent a letter to Marvin Kaplan, Chairman of the National Labor Relations Board (NLRB), expressing his disappointment in the NLRB’s recent vote to reinstate the harmful joint employer rule by vacating the Hy-Brand Industrial Contractors, Ltd. and Brandt Construction Co. decision from December 2017.

In the letter, Chairman Chabot said:

“For over 30 years, the NLRB used one standard to determine whether two separate businesses were joint employers. By vacating the December decision, the Board has once again put small business employers in limbo by not knowing if they will be unfairly held responsible for actions by employees they do not employ.”

Chabot continued, “I am extremely disappointed in the Board’s decision and will continue working to advance the legislation that is necessary to restore certainty to America’s small business owners and their employees.”

To read the full letter click HERE.

Chairman Chabot is an original cosponsor of H.R. 3441, the Save Local Business Act, to reverse the NLRB’s decision expanding the definition of the joint employer standard. H.R. 3441 passed the House on November 8, 2017.

The Committee first held a roundtable in April 2015 on the issue. NLRB then expanded its definition of the joint employer standard in August 2015. In March 2016, the Committee held a hearing titled, “Risky Business: Effects of New Joint Employer Standards for Small Firms” to examine the negative impact of the rule on small businesses.

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