The National Restaurant Association and every state restaurant association brought a fresh wave of pressure on lawmakers to overturn the Biden administration’s new joint employer rule via the Congressional Review Act.
— In a letter to the Hill on Thursday, the restaurant associations complained that the new joint employer rule released last month, which could make it easier for companies to face liability for labor law violations involving franchisees or contractors, would have implications that “are profound and far-reaching for the restaurant industry.”
— “This change is not merely administrative; it redefines what it means to be an employer in our industry. Under this rule, the expanded criteria for joint employer status could result in numerous restaurant operators being inadvertently caught in complex legal and regulatory networks, particularly those in franchisor-franchisee relationships or those utilizing third-party vendors,” the groups wrote, warning that it “could limit entrepreneurship and dampen the dynamism essential for restaurants’ continued success and resilience in communities in every state.”
— The National Restaurant Association is at the forefront of the business community’s aggressive opposition push to block the new rule from going into effect. Its legal arm was part of the industry coalition that filed the first legal challenge to the rule last month, and signed on to a letter with more than sixty other trade associations urging Congress to roll back the rule.