Joco Today

May 3, 2024

Manhattan, KS- Today, President Joe Biden vetoed a bipartisan measure that would have overturned the administration’s expansion of burdensome and unnecessary joint employer standards. The double down by this administration on this misguided decision is an assault on our small businesses and the franchise business model responsible for nearly 9 million jobs across the United States.

The Joint Employer status is established when two businesses are found to be controlling the working conditions of employees. Having broader joint employer standards would put undue liability on franchisors, forcing them to invade the operations of their franchisees more, essentially turning franchisees into corporate middlemen.

U.S. Senator Roger Marshall released the following statement following this announcement. “Joe Biden continues his regulatory onslaught by vetoing a bipartisan resolution nullifying the NLRB’s disastrous joint employer rule,” Senator Marshall said. “It’s clear to anyone who reads this rule that franchises and other small businesses will be crushed by the standards set. Instead of leaving small businesses with uncertainty, we should codify clear and concise joint employer standards like we’ve done in our Save Local Business Act.”

Senator Marshall has been a leader on this issue, introducing the Save Local Business Act, which codifies narrower joint employer standards. By narrowing the scope of joint employer standards, franchisees would have more freedom in their operations, and preserve their independence as small business owners.