Entrepreneurship and Small Businesses Take A Big Hit with NLRB “Joint Employer” Ruling

By at 28 August, 2015, 9:40 am


Washington, D.C. – Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement in response to a National Labor Relations Board (NLRB) ruling on August 27 on the Browning-Ferris case, which will expand the traditional definition of a “joint employer.” The harsh ruling significantly weakens business owner control over decision-making and operations, and upends business models that are the path to entrepreneurship and financial independence in America:

“Obama Administration regulators are dead set on making the United States a hostile place to startup and build a business. This week’s edict is the NLRB ruling, which serves as a major impediment to risk-taking and opportunity for Americans. In today’s economy, entrepreneurs and small business owners need flexibility and autonomy to run their businesses, but the NLRB says government knows better. If your small business is a subcontractor, a franchise, or participates in a partnership, your business is under attack.”

“The United States is quickly turning from the land of opportunity to a place of hostility when it comes to starting up and building a business. We are not even in the top twenty most-friendly countries, according to the World Bank. Around the globe, governments are streamlining regulations, improving tax systems and modernizing labor market rules to align with 21st century commerce and technologies. America is moving in the opposite direction, and Obama Administration regulators continue to accelerate the pace of intrusive, one-size-fits-all rulemakings. Small businesses, entrepreneurs and their hard-working employees are suffering the most.”

SBE Council is a coalition partner of the Coalition to Save Local Businesses, which is spearheading the advocacy and education efforts on NLRB “joint employer” actions and potential rulings that impact small businesses. Read the coalition’s statement here.  The coalition also developed a FACT SHEET on the NLRB’s decision and what it means for small businesses and entrepreneurship in America.

SBE Council is a nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For more than twenty years SBE Council has successfully fought for policies and initiatives that strengthen the ecosystem for startups and small business success. For more information, please visit  SBE Council also directs the Center for Regulatory Solutions, a project that educates the public on the impact of federal government regulation and solutions to make the system more accountable, transparent and small business friendly. Follow on Twitter: @SBECouncil

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