AH&LA calls on members to help enact legislation that will roll back NLRB’s recent redefinition of a “joint employer.”
(Oct. 22, 2015) AH&LA President & CEO Katherine Lugar issued the following action alert asking members to contact their representatives in Congress to urge support for the “Protecting Local Business Opportunity Act.” This legislation would protect the traditional, direct control definition of joint employer.
Dear AH&LA Member,
As you know, an overreaching National Labor Relations Board (NLRB) has upended 30 years of labor law by changing the definition of “joint employer” under the National Labor Relations Act (NLRA). In doing so, they are fundamentally altering what it means to be a business owner or an employer. This marks a very significant liability shift and as an owner or employer, you can now be held liable for actions and activities of employees who are not your own.
This past August, the NLRB issued its decision in a case called Browning-Ferris Industries(BFI) in which the NLRB completely re-wrote the joint employer standard by including “indirect” and “potential” control as part of a new standard. In doing so, the NLRB ignored years of legal precedence and created an environment of uncertainty that will put pressure on primary companies to assert more authority over small businesses to limit new potential liabilities under federal labor law. This short-sighted and highly political decision by the NLRB could impact virtually any business to business contractual relationship and force many larger employers or corporations to stop outsourcing any aspect of their business or limit franchising opportunities.
AH&LA co-chairs The Coalition to Save Local Businesses which has been working aggressively to educate members of Congress on the negative consequences to our industry and urge them to reinstate the previous joint employer standard. Through our collective efforts, legislation entitled: “Protecting Local Business Opportunity Act” has been introduced in the Senate (S. 2015) and the House (H.R. 3459) and would protect the traditional, direct-control definition of joint employer which has been the standard under the NLRA for decades. We need your help to ensure Congress acts on this legislation and moves it to the finish line.
Please take a few short minutes now to urge your member of Congress to cosponsor and support S. 2015/H.R. 3459, the “Protecting Local Business Opportunity Act.” By clicking here,* you will send a letter that helps make this legislation a priority for our industry.
Thank you for your continued support. Together, we can make this happen.
President & CEO
American Hotel & Lodging Association
*Link is for registered AH&LA members. See below for links to contact your legislators.
Sample Legislator Letter
|Subject: Stop the NLRB Overreach- Cosponsor S. 2015|
|As a member of the hotel industry who will be impacted by changes to the joint employer standard, I urge you to cosponsor and support S. 2015, the “Protecting Local Business Opportunity Act”. This commonsense legislation would address decisions made by the National Labor Relations Board (NLRB), which undermine the National Labor Relations Act (NLRA) and create unnecessary uncertainty for my business and my employees. The lodging industry is one of the nation’s largest employers. With 1.9 million employees in cities and towns across the country, the hotel industry generates $176 billion in annual sales from more than 5 million guestrooms at 53,432 properties. It’s particularly important to note that this industry is comprised largely of small businesses, with more than 55% of hotels made up of 75 rooms or less. For more than three decades, the joint employer standard has been one of the cornerstones of labor law, protecting small businesses like mine from undue liability involving employees over which they do not have actual or direct control.
Unfortunately, through its Browning-Ferris Industries decision, the NLRB has completely re-written the joint employer standard by including “indirect” and “potential” control into its decision. This means that employers can now potentially be held liable for the actions and activities of employees that they do not employ or have any interaction. In doing so, the NLRB has ignored years of legal precedence and has created an environment of uncertainty that threatens my business and the well-being of my employees. As a constituent and an employer in your district, I urge you to cosponsor the “Protecting Local Business Opportunity Act” which will bring much needed certainty back into labor law, reversing the new ambiguous and senseless joint employer standard included in the NLRB’s Browning-Ferris Industries decision. Thank you for your consideration of this critical legislation.
SEND THE ABOVE EMAIL TO YOUR CONGRESS MEMBERS