A resolution overturning federal regulators’ re-definition of “joint employer” will be put to a vote by the full U.S. House of Representatives the week of Jan. 7, affording restaurant franchisors a late shot at averting increased litigation and union activity, the International Franchise Association said Friday.
Under the new definition, franchisors would be regarded more readily as joint employers of their franchisees’ workers. As such, they’d be liable for the licensees’ infractions of labor rules, meaning the home office could also be sued or hit with regulatory sanctions.
In addition, say opponents, the redefinition would likely make unionization of a franchised restaurant chain far easier. Instead of having to organize the brand franchisee by franchisee, the effort could be focused on the franchisor, since it’s technically the employer of all workers within a system.
The Service Employees International Union has made an expansion of the joint-employer term one of its political priorities. It wants the joint-employer label to apply to any franchisor who could possibly influence a franchisee’s labor practices, regardless of whether that potential power is exercised or not.
The new definition was put forth by the National Labor Relations Board, the quasi-independent federal agency that regulates union organizing and activities.
The measure that will be put to a vote is a resolution rather than a law. Under a measure passed in the early 1990s, Congress gave itself the power to rescind rules and definitions that are promulgated by executive branch agencies. The law was intended to give lawmakers the chance to un-do measures that were championed by a hostile White House administration.
It has only been used in a handful of situations, typically after control of the White House shifts from a rival party to the one controlling Congress. Republicans currently hold a small majority in the House.
Only a simple majority would be needed for the House to approve the resolution. It would then move to the Senate, where Democrats have a very thin majority.
The IFA has led other stakeholders in resisting the redefinition. It notes that the resolution is co-sponsored by 68 of the 435 representatives in the House and 39 of the 100 senators.
“We need Congress to stand up for small businesses whose livelihoods will be upended by this rule,” said Michael Layman, SVP of government relations and public affairs, in a prepared statement.
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