What just happened: President Biden today vetoed a bipartisan Congressional Review Act (CRA) resolution to overturn the NLRB’s expanded Joint Employer Rule. This rule would have imposed joint liability for franchisors and franchisees concerning labor issues. In issuing the veto, Biden said he did so to protect workers’ rights to “organize and bargain collectively.”
What’s next: Congress is unlikely to have enough votes to override the President's veto. In March, a federal judge vacated the broader 2023 Joint Employer Rule, declaring it inherently flawed after challenges from the Restaurant Law Center and other industry groups. The NLRB may seek to appeal the judge’s decision to a higher court. The 2020 Final Rule, which requires "direct and immediate" control over employees' conditions to establish a joint employer relationship, remains in effect. Our take: Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association, released the following statement in response to today’s veto: “The House and the Senate came together to pass a resolution that supported small business restaurant owners across the country, so it’s disappointing that the president chose National Small Business Week to veto it. A recent court decision rolling the Joint Employer Standard back to the 2020 rule means that today’s action won’t negatively impact restaurant owners, but there’s still uncertainty every day that another wrenching change to the Standard is just around the corner.”
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May 2024
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