Central ND News

WASHINGTON – Senator John Hoeven expressed his support for the U.S. Senate's passage of a resolution to reverse the National Labor Relations Board’s (NLRB) joint employer rule. The resolution, introduced by Senator Hoeven and Senator Bill Cassidy, aims to overturn a rule that imposes liability on companies for another business’ employees, even if they do not directly oversee them.

In a statement, Senator Hoeven highlighted the negative impact of the NLRB's joint employer rule on businesses, stating, "The NLRB’s joint employer rule creates legal uncertainty, hurting a successful business model while needlessly imposing costs on business owners." He emphasized that the resolution would restore long-standing legal standards and alleviate the burdens of the new rule, allowing business owners to focus on hiring more employees and expanding their operations.

The joint employer rule has been a point of contention for years, with changes made during the Obama administration in 2015 and reverted to the previous standard during the Trump administration in 2020. Senator Hoeven's efforts aim to bring back stability and clarity to businesses by reinstating the "direct and immediate" management standard for determining joint employer status.

The reversal of the NLRB's joint employer rule is seen as a positive step towards supporting the franchise business model, which employs millions of workers and enables individuals from diverse communities to become successful business owners. By eliminating the legal uncertainties and reducing operational costs associated with the rule, small and local businesses can have more opportunities to create jobs and grow their enterprises.

The resolution passed by the U.S. Senate reflects a bipartisan effort to address concerns raised by business owners and stakeholders regarding the NLRB's joint employer rule. Senator Hoeven's commitment to restoring legal stability and promoting business growth has garnered support from various sectors seeking to alleviate regulatory burdens and foster economic development.