President Joe Biden’s administration is hurting small business owners with “a series of new labor rules that make entrepreneurship more difficult and, in some cases, illegal,” Job Creators Network President Alfredo Ortiz writes in an op-ed for the Washington Examiner.
Ortiz writes:
Last week, the National Labor Relations Board announced a new joint employer rule that reduces franchising and contracting opportunities. This is in addition to a rule the Department of Labor is about to finalize that would ban many forms of freelancing and independent contracting.
As its name implies, the NLRB’s new standard makes franchisees and contractors joint employers with their corporate parents. It expands the definition of employer from the commonsense one of a business that has “direct and immediate” control over employees to one that exercises mere “indirect” or “reserved” control.
As a result, corporations will curtail franchising and contracting opportunities due to liability concerns. If, for example, a restaurant or hotel franchisee improperly calculates an overtime payment, or if a janitorial contractor on a job site misses a safety regulation, greedy plaintiff lawyers can sue the corporation, which is now jointly responsible.
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