Lawmakers Question Legality of NLRB's Joint Employer DecisionCongress joins the franchising industry in seeking explanations.

ByKate Taylor

Opinions expressed by Entrepreneur contributors are their own.

The franchising industry is getting some backup from Congress in the joint employer debate.

周四,三个议员公布的一封信the National Labor Relations Board General Counsel Richard Griffin, requesting an explanation for the board's decision to hold franchisors as joint employers in labor violation cases. The letter, addressed from Rep. John Kline (R-Minn.), Senator Lamar Alexander (R-Tenn.) and Senator Ron Johnson (R-Wis.), requests that Griffin produce documents and communication over the last few months relating to the joint employer standard.

In addition to requesting explanation for the decision, the letter expresses concerns that Griffin attempted to hold franchisors liable as joint employers despite understanding that he did not have the legal grounds to do so.

Related:Judge Rules Against Joint Employer Responsibility in Minimum Wage Case

"[Griffin] stated, "in that area we have a problem, legally, for our theory' to hold franchisors as joint employers," the letter states. "Despite this admission, only months later on December 19, 2014, [Griffin]issued complaintsagainst a franchisor as a joint employer."

The letter points to instances of Griffin arguing for the expansion of joint-employer relationships to allow for more meaningful collective bargaining as evidence that the NLRB's recent decisions are essentially labor reform without the necessary legal underpinnings.

The International Franchise Association has similarly framed the joint employer decision as a legally suspect play tosupport labor unions, specifically highlighting the involvement of the Service Employees International Union in the efforts. Since the NLRB's decision to consider McDonald's corporate a joint employer in July 2014, the IFA and other franchise industry groups haveloudly protestedthe move, calling it a decision that could tear the franchise model apart.

Related:Franchisees Team Up to Urge Congress to Examine 'Joint Employer' Standard

Wavy Line
Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor.

Editor's Pick

Related Topics

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

企业家是不能过度指狗万官方望太多a company exit for their eventual 'win.' Do this instead.

Living

How to Start a 'Million Dollar' Morning Routine

Restructure your morning with a few simple steps that may help to amplify your energy.

Business Solutions

Learn to Program an AI Chatbot for Your Business in This $30 Course

Get back-to-school savings on this AI coding course.

Business News

'Truly Unprecedented': If You Are Hoping to Score a Lionel Messi Soccer Jersey, You Are Going to Wait a Very Long Time

The soccer superstar's authentic Inter Miami jersey is sold out through October.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.

Thought Leaders

Mark Cuban Says These are the Dumbest Things Entrepreneurs Do

Whatever you do, don't do the first thing on this list. Or the second. Definitely not the third.