The National Labor Relations Board is revisiting a “joint employer” rule to take effect this winter, expanding its scope. In 2015, the NLRB introduced a loosely defined version of this rule, altering how a corporate entity and its local owner are linked. For example, a franchise owner in Maine might be reclassified as a middle manager, working directly for the corporate entity instead of as an independent owner.

In 2015, a similar rule was put in place but later rescinded in 2020. The NLRB then replaced it with a detailed list of circumstances defining when someone could be considered a “joint employer.”

Government agency rules can be complex, especially for small business owners focused on their success. In 2015, the NLRB decided that two entities could be joint employers, even with only indirect or reserved control over employment terms, superseding a 1984 rule requiring direct control. This decision caused uncertainty, and in 2020, the NLRB reverted to the 1984 standards.

The new rules will be harmful to Maine’s small businesses, including retailers and restaurants under franchise or corporate agreements, constituting roughly half of the state’s businesses.

This rule grants the NLRB significant powers over the relationship between a corporate entity and its franchisee or business owner.

Sen. Susan Collins has cosponsored legislation to overturn the joint employer rule, and Sen. Angus King has expressed opposition to the NLRB’s initial rule. It’s appreciated that our senators are continuing to defend Maine businesses and address this perceived federal government overreach.

James Howard
Topsham

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