Associated Builders and Contractors - Coalition to Save Local Businesses Executive Director Michael Layman released the below statement on the recent House Education and the Workforce joint subcommittee hearing on the Save Local Business Act (H.R. 3441).
“Each hearing this Committee holds teaches us more about the consequences of the expanded joint employer standard, and the conclusions drawn by local business owners who testify have been the same: it is simply not working,” stated Layman. “The Save Local Business Act strikes the right balance between protecting local businesses and employees and providing them with as much clarity and certainty as possible. We applaud the bipartisan leadership of Members of Congress on this issue, and we encourage the Committee to pass this important legislation as soon as possible.”
During the hearing, Tamra Kennedy, president of Twin City T.J.'s, Inc. based in Roseville, Minnesota, testified on behalf of the CSLB, describing the impact that the expanded joint employer standard has had on her business and her ability to grow her workforce:
“Joint employer is impacting our ability to recruit and retain quality entry-level employees... Any quality business owner will tell you that our businesses are only as good as our employees; quite simply, we want and need employees to consider our business when they are searching for a job. Statistics continue to show that we have fewer people joining the workforce, increased competition for those entry-level positions, and critically high marketing and advertising costs to recruit…[so} it could not be more important today to have the recruiting tools and support once provided by our brand company.”
The Coalition to Save Local Businesses is a diverse group of locally owned, independent small businesses, associations and organizations. Below are additional statements from CSLB partners:
Matt Haller, senior vice president of Public Affairs and Government Relations, International Franchise Association:
“The more everyone learns about the impact of the expanded joint employer policy, the more bipartisan support is offered in the effort to fix it. Local franchise business owners nationwide are feeling the effects of this ambiguous new rule, and they deserve the clarity and certainty the federal government could provide through passage of the Save Local Business Act. We applaud the work of the Committee on this issue, as well as the leadership of bipartisan Members of Congress, and we look forward to continued action in the days ahead.”
Cicely Simpson, executive vice president, National Restaurant Association:
“The impact of the NLRB’s dramatic expansion of joint employment liability on restaurants and other small businesses is extensive. It results in higher operational and legal costs and fewer opportunities to create jobs. We strongly encourage passage of H.R. 3441, the ‘Save Local Business Act’ and thank Chairman Byrne for introducing this important legislation to correct these problems.”
Brian Crawford, vice president of Government Affairs, American Hotel and Lodging Association:
“We greatly appreciate Chairman Byrne, Chairman Walberg, and members of the subcommittees for their commitment to hear multiple perspectives on the specific impact of the joint employer issue on local businesses and franchisees, including the hotel industry. We encourage the committee to pass the Save Local Business Act, which will reinstate the long-standing joint employer definition that has proven effective for decades. Not only does this commonsense legislation provide employers with the clarity and certainty they need to create jobs and support their communities, but it also fosters the entrepreneurial spirit that has helped families, across generations, achieve their American Dream.”
Chip Rogers, president and CEO, Asian American Hotel Owners Association:
“The bipartisan leadership that has brought forward the Save Local Business Act should be commended. Today’s hearing showcased once again the confusion that the expanded joint employer standard has caused in this country. Small business owners and entrepreneurs deserve certainty. With this bill’s clarification, they can get back to doing what they do best: creating jobs and running their businesses.”
Evan Armstrong, vice president of Government Affairs, Retail Industry Leaders Association:
“We thank the House Education and Workforce Committee for holding today’s hearing to listen to the concerns of America’s job creators. The NLRB’s decision to overturn decades of sound law stifles employee growth and innovation throughout our retail supply chain and American industry at large. As retailers seek clarity on this issue, we look forward to working with Congress to support a clear definition of joint employment that will help us grow and create jobs across the country.”
Mike Bellaman, president and CEO, Associated Builders and Contractors, which represents more than 21,000 commercial and industrial construction contractors and related businesses:
“The NLRB’s 2015 ‘joint employer’ decision would disrupt hundreds of thousands of business operations throughout the country and threaten the ability of hardworking Americans to achieve the American dream of owning their own business. ABC thanks Reps. Byrne and Walberg for calling this hearing to shine a light on legislation they introduced to bring stability back into the economy for contractors and subcontractors across the country. We support the Save Local Business Act and urge a swift vote in the committee to pass it.”
To learn more about the Coalition to Save Local Businesses and the joint employer issue, click here.
The Coalition to Save Local Businesses represents thousands of local businesses and millions of American jobs through its membership and partner organizations. The coalition’s goal is to inform Members of Congress and others about the negative consequences decisions by the National Labor Relations Board to expand the definition of who can be held as a joint employer would have on local businesses and their employees across the country. The coalition is asking Congress to support legislation that would make permanent the long-standing and widely accepted definition of joint employer. To learn more about the coalition visit the website, www.SaveLocalBusinesses.com.