NRF calls NLRB ruling a ‘roadblock’ to job creation

Washington— The National Retail Federation wasted no time responding to a ruling by the National Labor Relations board concerning the redefinition of the concept of joint employees.

NRF and other business groups are concerned that the redefinition could be used to make large businesses and franchisors responsible for the actions of subcontractors or local franchisees even when they do not exercise direct control over those companies’ employees.

The NRF issued the following statement fromsenior VP for government relations David Frenchontoday’s ruling that certain companies can be considered joint employers:

“The NLRB’s decision disregards 30 years of clear precedent requiring a joint employer to have direct and immediate control over employees, and it unnecessarily blurs the distinctions between independent parties in a wide range of normal business-to-business relationships such as franchising or subcontracting.

“This is further evidence that the NLRB has given up its position as an objective arbiter of workplace issues and sees itself as an advocate for organized labor as a means of imposing new workplace obligations and legal liabilities on well-known corporations.

“Small business subcontractors and franchisees provide millions of jobs for American workers and thousands of opportunities for local entrepreneurs to own their own businesses and contribute to the local economy. This action from Washington is just one more example of unelected government bureaucrats creating roadblocks in the path of job creation and economic growth.”

The NLRB general counsel’s office ruled in July 2014 that McDonalds Corp. could be considered a joint employer along with its local franchise restaurants.In Thursday's ruling, the full NLRB said Browning-Ferris Industries can be considered a joint employer along with a staffing agency that provided employees. NRF and other business groups are concerned that the redefinition of the concept of joint employers could be used to make large businesses and franchisors responsible for the actions of subcontractors or local franchisees even when they do not exercise direct control over those companies’ employees.