PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Advocate for Entrepreneurs Lauds House Passage of “Save Local Business Act”

By at 8 November, 2017, 8:45 am

NEWS

FOR IMMEDIATE RELEASE

Washington, D.C. –  The U.S. House passed the “Save Local Business Act” (H.R. 3441) on November 7, and Small Business & Entrepreneurship Council president & CEO Karen Kerrigan lauded its passage and the members who voted in support of fixing the vague “joint employer” standard that is undermining entrepreneurial activity and small business independence.

“Smart and fair government policies are fundamental to creating a supportive ecosystem for startups and successful small business growth.  The Save Local Business Act provides a needed fix to the vague and expansive ‘joint employer’ standard that is placing many small businesses at risk, exposing them to liability, new costs and loss of business control,” said Kerrigan.

Kerrigan noted that many entrepreneurs who dream of franchising their business model have put their plans on hold until the standard reflects common sense and intelligibility.  For example, SBE Council member Kristie Arslan, owner of Popped! Republic, has done extensive research on franchising her business.  But the joint employer standard is a major roadblock for her expansion dreams: “We just felt we could not take the risk right now, until we got some certainty around joint employer and the impact that it would have on our business,” as Kristie noted at an event when the bipartisan H.R. 3441 was announced.

The NLRB replaced the common sense and long-standing “direct and immediate control” standard on joint-employer liability with a vague and expansive “indirect” and “potential” control definition. Under the new standard, a joint employer is any business that exercises indirect, potential or even reserved control over the practices of another business and its employees.

H.R. 3441 provides a simple fix by amending the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FSLA) to clarify that two or more employers must have “actual, direct and immediate” control over employees in order to be considered joint employers. .

“SBE Council and our members are grateful for the leadership of Reps. Bradley Byrne (R-AL), Virginia Foxx (R-VA) and Henry Cuellar (D-TX). Their support and advocacy made a huge difference in advancing this legislation and SBE Council is appreciative of their passion for local businesses and entrepreneurship across America,” added Kerrigan.

Read Kerrigan’s blog post “Encouraging Entrepreneurship and Business Expansion,” which provides more information about the “joint employer” standard, why HR. 3441 is needed, and answers some of the myths being circulated about the bill.

SBE Council’s support letter for H.R. 3441 can be read here.

CONTACT:
Karen Kerrigan, kkerrigan@sbecouncil.org, 703-242-5840

Raymond Keating, Chief Economist, rkeating@sbecouncil.org, 631-909-1122

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil

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