The House of Representatives voted 206-177 on Friday to roll back a rule finalized by the National Labor Relations Board last year that sets new standards for determining joint-employer status.
H.J.Res. 98, the joint resolution sponsored by Rep. John James (R-MI) that struck down the NLRB’s new joint-employer standards, passed largely along party lines, yet eight Democrats joined Republicans in voting for passage.
Friday’s vote was largely symbolic, as it remains unclear if the Senate will take up the legislation. Furthermore, President Joe Biden vowed in early January to veto the legislation should it land on his desk.
The Biden administration’s rule subverted standards established by then-President Donald Trump in 2020 and would effectively make it easier for millions of workers to unionize by lowering the standard defining companies as joint employers with third-party companies. The rule was set to go into effect at the end of February.
During his floor speech ahead of the vote, James said the NLRB’s rule was part of Biden’s regulatory agenda that unfairly prioritizes labor and harms small businesses.
“We already have the right to collectively bargain in this country, but this rule goes too far. This is the most glaring evidence yet that capitalism and choice are threats to this administration’s socialist, ‘America last’ agenda,” James stated. “Bureaucrats don’t create jobs. Businesses create jobs, but Republicans aim to make policy that will not only result in more jobs but more job creators. These job creators, these entrepreneurs, these franchisees, these independent contractors create good-paying jobs and give people the opportunity to succeed, and overturning this joint-employer rule is just the first step in the right direction.”
Opponents to the NLRB rule previously told the Washington Examiner that while joint-employer standards are generally a “good idea,” the new standards, specifically provisions defining “indirect” and “reserve” control of employee conditions, are “overly broad.”
Furthermore, they argued the rule could open small businesses, such as franchisees and independent contractors, to improper labor lawsuits and would lead to the shuttering of small businesses across the country.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The White House did not comment on the House’s passage of H.J.Res. 98, but the president’s Jan. 8 veto threat said that “workers have the right to bargain for fair wages and working conditions with every company that directly or indirectly controls their terms and conditions of employment.”
“Too often, companies deny workers this right by hiding behind subcontractors, staffing agencies, and temporary agencies,” the White House wrote. “Reversing this rulemaking will prevent workers from exercising their right to bargain for higher wages, better benefits, and safer working conditions. Simply put, this legislation would mean lower wages for working families.”