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Foxx, Byrne Praise Proposed DOL Rule Clarifying Joint Employer Status

WASHINGTON, April 1, 2019
Rep. Virginia Foxx (R-NC), Republican Leader of the Committee on Education and Labor, released the following statement upon the announcement of the Department of Labor’s (DOL) proposed rule to address joint employment under the Fair Labor Standards Act (FLSA): 
 
“Since 2015, the confusion and uncertainty created by the Obama administration’s extreme joint employer standard has threatened American job creation and hurt employees and employers alike. We consistently hear from job creators that the Obama-era scheme is impacting their ability to grow their businesses. The Department of Labor’s proposed rule to clarify a commonsense joint employer definition under the FLSA will provide much-needed certainty for America’s local businesses. We applaud the Trump administration and Secretary Acosta’s commitment to making regulatory relief for Main Street businesses and working families a top priority.”
 
Rep. Bradley Byrne (R-AL), Republican Leader of the Subcommittee on Workforce Protections, said: 
 
“This rule is appropriate and necessary to protect American workers and bring much needed clarity for small businesses across the country. As I have long said, the ambiguous and expansive joint-employer standard of the Obama NLRB has caused confusion and threatened thousands of jobs.  It is imperative we move forward with a new rule. I applaud Secretary Acosta and his team on their hard work, and I look forward to providing comments and supporting the process as we move forward.”
 
BACKGROUND: In 2015, the National Labor Relations Board (NLRB) created confusion for employers and employees with its joint employer ruling under the National Labor Relations Act in Browning-Ferris Industries, hurting both employers and workers. The federal circuit courts have also issued decisions with inconsistent tests for joint employer status under the FLSA. During the 115th Congress, the Republican-led House of Representatives passed the bipartisan legislation H.R. 3441, the Save Local Business Act, to amend the National Labor Relations Act and the Fair Labor Standards Act to clarify that two or more employers must have direct and immediate control over employees to be considered joint employers. 
 
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