Allies join fight against joint employer

The IFA isn’t alone in its mission to stop the new joint employer rule. The National Association of Convenience Stores (NACS) joined forces with the U.S. Chamber of Commerce, and other business advocacy groups to file a lawsuit against the National Labor Relations Board (NLRB).

This legal action, lodged in the U.S. District Court for the Eastern District of Texas, challenges the NLRB's new joint employer rule, alleging violations of both the National Labor Relations Act and the Administrative Procedure Act, according to a report on csnews.com.

The contentious rule in question reverses the 2020 joint employer measure, effectively making it simpler for companies to be classified as joint employers, particularly in sectors like franchising, contracting, and supply chains. The change significantly expands employer liability and allows unions to organize across multiple companies rather than store by store.

The plaintiffs, which include various influential organizations like the U.S. Chamber of Commerce, American Hotel and Lodging Association, and National Retail Federation, contend that this new rule could have profound repercussions across businesses of all sizes. They argue that a previous expansion of joint employer rules, observed from 2015 to 2017, cost franchise businesses approximately $33 billion annually, leading to 376,000 lost job opportunities and a surge in lawsuits.

Glenn Spencer, senior vice president of the U.S. Chamber of Commerce's Employment Policy Division, criticized the NLRB's actions, accusing the agency of promoting unionization at the detriment of workers, employers, and the economy. Spencer emphasized the irrationality of holding businesses accountable for workers they don't directly employ or workplaces they don't own or control. The lawsuit aims to rein in overreach by the NLRB.