Congressional Hearing on “Save Local Business Act” Demonstrates Need for Reform, Bipartisan Support for Action

By at 13 September, 2017, 3:16 pm

By Karen Kerrigan-

On September 13, the House Education and Workforce Committee hosted a joint legislative hearing on the Save Local Business Act, H.R. 3441, a legislative solution to fix the expanded joint employer rule that is generating deep uncertainty and operational havoc for many entrepreneurs and small businesses. The legislative fix is needed for a healthy small business sector, and to ensure U.S. policies support the entrepreneurial growth our nation needs for a more dynamic economy.

“To most Americans, the question over who their employer is seems to be an obvious answer. It’s the person who hired them, the one who signs their paycheck,” said U.S. Representative Bradley Byrne (R-AL), who serves as Chairman of the Subcommittee on Workplace Protections. “As a former labor attorney, I can tell you it used to be very clear in legal terms how you become someone’s employer. But that’s no longer the case since the National Labor Relations Board (NLRB) stepped in.”

“It’s time to settle once and for all what constitutes a joint employer — not through arbitrary and misguided NLRB decisions and rulings by activist judges — but through legislation,” U.S. Representative Tim Walberg (R-MI) added, who serves as Chairman of the HELP Subcommittee.

See our Small Business Insider blog post on H.R. 3441 to understand why the bill is needed.

As SBE Council president and CEO Karen Kerrigan noted in a media release when the bipartisan bill was introduced on July 271, 2017:

“Certain regulations and actions advanced under the previous Administration were particularly damaging to the entrepreneurial ecosystem. The changes made to ‘joint employer’ is one of them. Furthermore, actions and changes pursued by other agencies at the state and federal level have created significant uncertainty and complexity for small businesses.  There needs to be clear, bright lines that establish business autonomy and the ‘Save Local Business Act’ is a needed solution that will provide that for small businesses.”

SBE Council Entrepreneur-in-Residence Kristie Arslan, who also owns Popped! Republic, also spoke about how the expanded joint employer rule impedes her plans to expand her business (click the image below).

There was active Twitter coverage of the hearing, and some key Tweets that help tell the story about why the Save Local Business Act is needed are below:

The House Education and Workforce Committee posted a recap of the hearing, which examined H.R. 3441 and key statements from the small business witnesses.

SBE Council is a member of the Coalition to Save Local Businesses, which is leading the charge to enact legislation. For more information about “joint employer,” fact sheets and to sign the petition to pass the Save Local Business Act click here.

Related Resource:

How the NLRB’s Joint Employer Ruling Undermines Small Businesses and Intellectual Property.

Karen Kerrigan is president & CEO, Small Business & Entrepreneurship Council

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