President Biden vetoed a congressional resolution that would have nullified the National Labor Relations Board’s recent joint employer rule, which could have made it easier for staffing firms and clients to be found joint employers for purposes under the National Labor Relations Act.

The new NLRB rule had previously been vacated in March by a federal judge in Texas. However, the NLRB indicated it was weighing next steps in the case.

In his veto message on Friday, Biden said if multiple companies control the terms of employment, then the right to organize is rendered futile if workers cannot bargain collectively with each of those employers.

“Without the NLRB’s rule, companies could more easily avoid liability simply by manipulating their corporate structure, like hiding behind subcontractors or staffing agencies,” Biden said. “By hampering the NLRB’s efforts to promote the practice and procedure of collective bargaining, Republicans are siding with union-busting corporations over the needs of workers and their unions.”

The resolution, H.J. Res. 98, passed 50-48 in the Senate, with most Republicans and Sens. Joe Manchin, D-West Virginia; Kyrsten Sinema, I-Arizona; and Angus King, I-Maine, voting in favor. Other Democrats voted against the resolution along Sen. Bernie Sanders, I-Vermont, and Josh Hawley, R-Missouri. Two senators did not vote: Sen. Mike Lee, R-Utah, and Sen. Bob Menendez, D- New Jersey.

Those criticizing the veto included the US Chamber of Commerce.

“The chamber is disappointed by the president’s veto of legislation overturning the NLRB’s joint employer rule,” Glenn Spencer, senior VP of the employment policy division at the chamber.

“The joint employer rule is the latest example of the NLRB abandoning its role as neutral administrator of the law. In this instance, the NLRB’s effort to put the thumb on scale in favor of union bosses poses a significant threat to the survival of small businesses, particularly those operating under the franchise model,” Spencer said. “That is why we are thankful that a federal judge recently blocked the rule from taking effect.”

Under the new rule, it could be easier for clients and staffing firms to be held joint employers and be obligated to bargain collectively with groups of union-represented employees, according to SIA research.

For more on the NLRB’s new rule, corporate members of SIA can see the North America Legal Update Q1 2024 report.