Washington, DC—January 12, 2024…Congressman Steve Womack’s (AR-3) cosponsored legislation passed the U.S. House of Representatives today. H.J. Res. 98 would nullify the National Labor Relations Board’s (NLRB) joint employer rule, which recklessly holds a company liable for employees it does not employ or directly control.

Congressman Womack said, “If implemented, this rule will wipe out thousands of jobs, operational costs will skyrocket, consumer prices will climb, and our small businesses will further crumble in Biden’s economy.  H.J. Res 98 will block this destructive overreach to empower America’s hardworking entrepreneurs who fuel our country’s economic engine. I proudly support policies that preserve the American dream and ensure our nation remains the land of abundant opportunity.”

Background:

• Under the National Labor Relations Act, two or more businesses were traditionally considered “joint employers” if they shared “actual,” “direct,” and “immediate” control over these essential terms and conditions of employment, including hiring, firing, discipline, supervision, and direction of employees. This predictable and clear standard ensured employers would not be saddled with collective bargaining obligations or with liability of a company they do not control.
• The Biden Administration’s NLRB rule would largely revive the Obama-era standard, which upended decades of precedent and broadly expanded joint employment.
• The Obama-era standard raised franchise operational costs by $33 billion, caused 376,000 lost job opportunities in the franchise sector alone, and increased NLRB unfair labor practice charges by 93%, imposing significant litigation costs on businesses both large and small.

Bill Breakdown:

• H.J. Res. 98 rescinds Biden’s anti-freedom, anti-growth joint employer rule and prevents future anti-business Administrations from implementing another similar job-killing regulation.

Congressman Steve Womack (AR-3) has represented Arkansas’ Third Congressional District since 2011. He is a member of the House Appropriations Committee.

womack.house.gov

###