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Collins Votes to Save Local Businesses from Obama-era Rule

WASHINGTON—The House of Representatives today passed the Save Local Business Act, H.R. 3441, which would dismantle the Obama Administration’s joint employer policy by clarifying the nature of a “joint employer” relationship. Rep. Doug Collins (R-Ga.) is an original cosponsor of the bill.

“The former administration made misguided regulations its calling card, and its joint employer rule illustrates just how badly this kind of overreach hurts American job creators and working families. This Obama-era policy continues to create confusion and threaten jobs by disadvantaging small firms. I’m glad to take the opportunity to reverse this course by helping the House pass the Save Local Business Act and bring relief to small businesses in northeast Georgia,” said Collins.

Under the previous administration, the National Labor Relations Board and other administration regulators expanded the definition of joint employer in a way that effectively discourages larger companies from working with smaller businesses. Businesses, according to this policy, qualify as joint employers if their business agreement has an “indirect” or “potential” impact on employees’ work environment. As a result, the policy inhibits the ability of small businesses or franchises to operate independently. H.R. 3441 clarifies that joint employers, by definition, must exercise “actual, direct and immediate” control over their employees.

The Save Local Business Act will go to the Senate for consideration. 

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