Ranking Member Cassidy on NLRB Dropping Appeal in Joint Employer Lawsuit, Reverts Back to Trump-era Regulation

WASHINGTON - Today, U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, released a statement following the National Labor Relations Board (NLRB) dropping its appeal to a recent federal ruling that vacated Biden's joint-employer rule. The Biden rule forced liability on companies for another business' employees, even if they do not directly oversee them. The previous Trump-era joint employer standard will remain in effect.

"Biden's joint employer rule undermines the American franchise model that has empowered those underrepresented in the business community, such as women and people of color, to live the American dream, becoming successful small business owners as they help create jobs. That's why Congress voted on a bipartisan basis to reject this policy," said Dr. Cassidy. "This is a win for the nine million American workers that earn a living from a franchise business."

Cassidy previously led a Congressional Review Act (CRA) resolution to repeal NLRB's joint employer rule. On April 10, the U.S. Senate passed the CRA by a bipartisan vote of 50 to 48. The CRA previously passed the U.S. House of Representatives by a bipartisan vote of 206 to 177. President Biden later vetoed this bipartisan CRA.

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