WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, highlighted the more than 170 organizations that wrote in support of his bipartisan Congressional Review Act (CRA) resolution to overturn the National Labor Relations Board’s (NLRB) new joint employer rule, which forces liability on companies for another business’ employees even if they do not directly oversee them. Last week, Cassidy joined U.S. Senators Joe Manchin (D-WV), Republican Leader Mitch McConnell (R-KY), along with U.S. Representatives John James (R-MI), Virginia Foxx (R-NC), chairwoman of the House Education and the Workforce Committee, and House Speaker Mike Johnson (R-LA) in introducing the CRA.
The new NLRB joint employer rule saddles franchisers with the liability of individual franchise owners despite having no operational authority over the business’ employees. This threatens the viability of the franchise business model, a system that employs over eight million workers and has empowered Americans from all communities to become successful business owners. Additionally, the rule creates uncertainty among small and local businesses on their legal liabilities, leading to higher operational costs and less opportunity to create jobs.
“This new Biden policy undermines the American franchise model that has empowered those underrepresented in the business community, such as women and people of color, to live the American dream, becoming successful small business owners as they help create jobs,” said Dr. Cassidy. “President Biden’s priority should not be whatever makes it easier to forcibly and coercively unionize workers while undermining the business model of the establishments they work for. It should be to support workers and grow economic opportunity.”
“On behalf of the 12,000 franchise businesses in Louisiana and first-generation Americans like myself, I am so grateful Sen. Cassidy is standing up for the franchise model. The joint employer rule out of Washington is unconscionable because it would force franchise businesses to take control of their franchisees like me. My family didn’t emigrate from Guatemala to the U.S. so that we could have the freedoms we fought so hard to earn taken away from us by those that didn’t have to live in their car just to survive, let alone be the business owners we are today. Thank you to Sen. Cassidy for helping to ensure that I can remain an independent business owner,” said Bill DiPaola, a New Orleans restaurant franchisee.
The supporting organizations include:
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