Coalition Letter in Support of Disallowing Federal Funds for NLRB’s “Joint Employer” Rule

By at 9 July, 2024, 4:38 pm

The Honorable Tom Cole
House Appropriations Committee
2207 Rayburn House Office Building
Washington, DC 20515

The Honorable Rosa DeLauro
Ranking Member
House Appropriations Committee
2413 Rayburn House Office Building
Washington, DC 20515


Dear Chairman Cole and Ranking Member DeLauro:

As you continue the work of drafting the Fiscal Year 2025 Labor, Health and Human Services, Education and Related Agencies (LHHS) Appropriations Act, the undersigned organizations representing employers of millions of Americans in every state write in strong support of the specific provision to prevent federal
funds from being used to administer, implement, or enforce the recent National Labor Relations Board (NLRB) rule entitled “Standard for Determining Joint Employer Status.”

In October 2023, the NLRB issued a Final Rule to implement a joint employer standard that will hold businesses liable for employment actions over which they have no direct control. This rule goes even further than a 2015 joint employer standard that cost businesses that utilize the franchise model more than $33 billion per year and doubled lawsuits against all small businesses.

The joint employer provision in the FY25 LHHS Appropriations Act will prevent implementation of the NLRB’s onerous rule and protect small businesses and jobs across the country. For these reasons, we applaud the Committee for including this language in the underlying legislation.

American Hotel & Lodging Association
Associated General Contractors of America
Health & Fitness Association
International Franchise Association
Independent Electrical Contractors
International Foodservice Distributors Association
National Association of Convenience Stores
National Retail Federation
National Council of Chain Restaurants
National Association of Wholesaler-Distributors
National Restaurant Association
National Federation of Independent Business
Retail Industry Leaders Association
Small Business & Entrepreneurship Council

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