The House Committee on Education and the Workforce recently approved the Save Local Business Act, which would clarify that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers under the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FLSA). The changes are significant and have the potential to disrupt the long-standing standards in labor law and the well-settled subcontracting practices in the construction industry. Due to the significance of the changes, AGC delivered a letter to Congress in advance of the committee action encouraging support of the legislation.
The legislative effort is in response to actions during the Obama Administration that broadened the definition of joint employer from an entity having direct control to a standard of indirect control over the essential terms and conditions of employment of suppliers and subcontractors. The legislation is likely to pass the House later this year, however, its outcome in the Senate remains less certain.
For more information, contact Jim Young at email@example.com or (202) 547-0133.