Issue Background

Protecting Local Business Opportunity

The Protecting Local Business Opportunities Act would ensure local companies and franchisees maintain thier autonomy over their own business. 

The Protecting Local Business Opportunities Act was introduced as a response to the National Labor Relations Board’s (NLRB) August 2015 decision involving Browning-Ferris Industries of California, in which the NLRB revised its standard for determining joint employer status (and liability) under the National Labor Relations Act.  Specifically, the NLRB stated that two or more entities will be considered joint employers if they are both employers under common law and “share or codetermine those matters governing the essential terms and conditions of employment.”  Most importantly, in its decision the NLRB stated that in addition to direct control, that a joint employer finding can occur where one company has the right to exert indirect or potential control over the terms and conditions of another company’s employees.

The Protecting Local Business Opportunities Act would amend the National Labor Relations Act to state that “Notwithstanding any other provision of this Act, two or more employers may be considered joint employers for purposes of this Act only if each shares and exercises control over essential terms and conditions of employment and such control over these matters is actual, direct, and immediate.”