House Passes AGC-Supported Bill to Clarify Joint Employer Definition

AGC Calls on Senate to Act
On Nov. 7, the House approved and AGC-backed legislation that restores the joint employer standard that existed prior to the National Labor Relations Board’s (NLRB) 2015 Browning-Ferris Industries decision. That decision broadened the definition of joint employer from those that share direct control over terms and conditions of employment to those with indirect control.
AGC and its multi-industry coalition long advocated for passage of the bill in the House and will now turn to advancing it in the Senate. In addition to the legislative remedy, AGC is also involved in a legal challenge to the decision and that challenge is currently under appeal in federal court.
The legislation, if approved by the Senate and signed into law, would simply clarify that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers. In addition, the bill targets changes made by the Obama administration’s Department of Labor which expanded the concept of joint employer under the Fair Labor Standards Act.
While the vote this week was bipartisan, it will be a challenge to overcome the senate’s 60 vote procedural threshold due to Democrat opposition.
For more information, contact Jim Young at youngj@agc.org or (202) 547-0133.


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