January 11, 2024

U.S. House of Representatives
Washington, D.C. 20515

Dear Representative,

You will soon be considering H.J. Res. 98, a resolution providing for congressional disapproval of the final rule published on October 27, 2023, by the National Labor Relations Board (NLRB), “Standard for Determining Joint Employer Status.”  On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you to support this resolution.

The joint employer rule is a clear example of government overreach.  Prior to the issuance of the rule, two or more businesses were considered joint employers under the National Labor Relations Act if they shared “actual, direct, and immediate control” over the essential terms and conditions of employment, including hiring, firing, discipline, supervision, and direction of employees.  The NLRB rule expands this definition to include those who have “indirect” or “potential” control over employees’ essential terms and conditions of employment. 

This new rule will cause confusion and increase costs for business owners.  When the NLRB issued a similar rule in Browning Ferris Industries in 2015, it raised franchise operational costs by $33 billion and caused the loss of 376,000 jobs.  That rule was overturned in 2017.  The new joint employer rule will cause the same hardships as the 2015 rule on businesses of all sizes across the country.  The increased costs will be even more harmful to small business owners who have been facing increased prices and high inflation for the past three years.   

Rather than allowing agencies like the NLRB to increase burdensome regulations on businesses, lawmakers should enact pro-growth policies that will get the economy back on track.  For these reasons, I urge you to support H.J. Res. 98.  All votes related to H.J. Res. 98 may be among those considered for CCAGW’s 2024 Congressional Ratings.

Sincerely, 

Tom Schatz 
President, CCAGW 

Click Here for a PDF Copy