The Biden Administration has dropped its appeal of a federal court decision striking down the National Labor Relations Board’s harmful “joint employer” rule after facing extensive opposition. This rule would have had devastating effects on the franchise business model by holding franchisors liable for actions of franchisees, even with minimal interaction or knowledge. The Goldwater Institute played a key role in defeating the rule by submitting formal comments to the NLRB during the rulemaking process, which were cited twelve times in the final documents. The NLRB struggled to justify the rule in the face of overwhelming opposition, leading to its demise in court.
The Institute had warned that the rule would have imposed significant costs on American businesses, affecting millions of them and adding hundreds of millions of dollars in extra expenses to the U.S. economy. Although this iteration of the rule is now dead, the NLRB has hinted that similar policies may resurface in the future. The Goldwater Institute remains committed to fighting against rogue administrative agencies that threaten the American Dream and the right to earn a living.
To learn more about the Goldwater Institute’s full comment submitted to the NLRB, visit the link provided. Additionally, find out about the Institute’s efforts to confront the Administrative State and stay informed about other harmful proposals by visiting their website. For more information on the joint employer rule and related issues, check out the Institute for the American Worker.
Parker Jackson, a Staff Attorney at the Goldwater Institute, has been involved in the Institute’s advocacy efforts against the joint employer rule. Keep up with the latest updates on this issue by following the Goldwater Institute’s work.
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