Hearing on New Joint Employer Standards for Small Businesses
January 1, 2016
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The Frame
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.
Potentially affected actors named in the source documents. Mention is not a position.
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.
Last recorded activity January 1, 2016.
Next step not available in the current record.
Summary
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.
- 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?
Why It Matters
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.
News Coverage
Sponsors
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
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