The proposed narrowing of the joint-employer standard will make collective bargaining among subcontracted and temporary workers “nearly impossible,” and could cost American workers $1.3 billion in lost wages annually, according to the Economic Policy Institute.

EPI Director of Policy Heidi Shierholz and Director of Government Affairs Celine McNicholas on Dec. 9 submitted comments to the National Labor Relations Board opposing the proposed rulemaking on the joint-employer standard under the National Labor Relations Act.

The comments stated the proposed narrowing of the joint-employer standard under the National Labor Relations Act would result in fewer joint-employer findings, leaving more workers unable to hold the employers who control key aspects of their jobs accountable for violation of labor law. Additionally, the proposed rule would make it nearly impossible for workers to bring all firms with the power to influence their wages and working conditions to the bargaining table.

Citing 2017 data from the Bureau of Labor Statistics, EPI said there are 2.3 million workers who work for contract firms and temporary help agencies. The data show that 170,000, or 7.4%, of these workers are covered by union contracts. Because the proposed joint-employer rule will make it nearly impossible for these contractors and subcontractors to bargain collectively, the workers would lose out on an estimated $1.3 billion in wages annually.

“The joint-employer standard should ensure that all businesses that share control over a worker’s pay, hours, and safety, have some responsibility to that worker under the law,” Shierholz said. “Instead, large corporations would benefit from this rule because it creates a loophole that would allow them to shirk their responsibilities under our nation’s labor law, while workers would lose billions.”

A new Staffing Industry Analysts research report examines developments in the standard for joint employment under the FLSA and NLRA and proposals to clarify the standard at the federal level.