The civic record
Read. Follow. Verify.Hearing on New Joint Employer Standards for Small Businesses
Record date · January 1, 2016
Track this bill to get notified when it advances a stage. One tap to stop, anytime.
What This Bill Does
This House Small Business Subcommittee hearing examined how recent changes to '' standards by the National Labor Relations Board (NLRB) and the Department of Labor (DOL) affect small business owners. The hearing focused on concerns that these new, broader definitions of employer liability could disrupt franchise and subcontracting business models.
The hearing addresses whether small businesses face increased legal liability and operational uncertainty due to federal agencies changing how they determine if two companies are 's' under labor laws.
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
Small business owners
They face potential changes in their contractual relationships with larger companies and increased exposure to federal labor law liability.
Franchisors and contractors
These entities must navigate new federal standards that determine if they are legally responsible for the employees of their franchisees or subcontractors.
Key Facts
- The NLRB issued a decision in 2015 that changed a 30-year-old standard for determining joint employer status.
- Under the new NLRB standard, companies can be classified as joint employers based on the 'potential to control' employment conditions.
- The Department of Labor issued new guidance in January 2016 applying an 'economic realities test' to determine joint employer relationships.
- Joint employer status can make one company liable for another company's compliance with federal labor laws.
Show all 6 facts
- The hearing was held on March 17, 2016, by the Subcommittee on Investigations, Oversight and Regulations.
- The Subcommittee expressed concern that these standards may lead larger companies to exert more control over small business contractors or terminate those business relationships entirely.
Frequently Asked Questions
What is a 'joint employer'?
Why are small businesses concerned about these changes?
What else do you want to know?
News Coverage
Follow the record
Votes, people, money & the original sourceFull breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Shift in Joint Employer Liability
The document highlights a transition from a 30-year-old standard to a broader 'potential to control' and 'economic realities' framework for determining employer liability.
Connected Entities
Sources
www.govinfo.gov
Analysis Score
0–100- Significance75How much this matters to a regular citizen
- Controversy60Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz20Current news / social attention level
Publisher tools