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US Senate repeals NLRB joint-employer rule but vote faces veto

April 11, 2024

The US Senate voted April 10 to repeal the National Labor Relations Board’s new joint employer rule, but Reuters reported that President Joe Biden has vowed to veto the vote. The Senate passed the resolution by a 50-48 vote with Sen. Joe Manchin, D-West Virginia; Angus King, I-Maine; and Kyrsten Sinema, I-Arizona, voting with Republicans. However, a two-thirds vote is needed to overcome a veto.

Already, the NLRB’s new joint-employer rule had been vacated by a federal judge in March, though the NLRB could appeal the ruling.

The new rule would make it easier for client firms and staffing firms to be joint employers, according to an analysis by SIA. “As such, both can be held liable for one another’s alleged labor law violations and be obligated to collectively bargain with a group of union-represented employees,” according to the analysis.

In addition, the new rule would affect franchise companies, and some members of Congress focused on that in their opposition to the rule.

“The joint employer rule has caused confusion for franchise owners for years,” Manchin said in a press release. “Telling them they could be held liable for actions taken by businesses with their brand, potentially subjecting them to corporate control.”