NLRB’s Joint Employer Proposal Destroys Business Ownership and Opportunity, Says Small Business Advocate

By SBE Council at 12 September, 2022, 11:51 am

NEWS

For Immediate Release

Washington, D.C. – On September 6, the National Labor Relations Board (NLRB) issued a Notice of Proposed Rulemaking on the joint employer standard, which would rescind and replace the newer and  clearer standard that took effect on April 27, 2020 with an expanded, unnecessary and unpredictable framework. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan released the following statement on the NLRB’s effort:

“Under the proposed standard, the NLRB would take away the benefits of independent business ownership and harm entrepreneurial opportunity. Not only would the broad and restrictive standard, if enacted, eviscerate the dynamic franchise model in the U.S. – of which a third of business owners say they would not be a business owner without this important model – small businesses across critical sectors are in jeopardy of losing independence, along with the financial investment and sweat equity they put into their businesses. Moreover, many individuals who want to start businesses would be restricted in the types of businesses they wish to form and launch.

“The Biden Administration’s blind allegiance to special interests driving this destructive rule would be a costly hit to local businesses and economies, and entrepreneurship across America.  In his Economic Blueprint released this month, President Biden stated that he is working to advance policies that will make the economy ‘more competitive, less concentrated and more resilient,’ yet the proposed NLRB joint employer standard will do the exact opposite. It will lead to fewer businesses, higher business concentration, and vast uncertainty, which undermines business and economic resiliency. SBE Council will work with our allies and supporters in Congress to ensure this harmful and misguided proposal is vastly revised – ideally withdrawn altogether, allowing the newly revised one to stand – to protect and preserve the small business community and entrepreneurial opportunity in America.”

CONTACT:

Karen Kerrigan, kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 28 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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