Joint Employer Bill Passed Out of Committee

A bill that would cement the definition of a joint employer as only companies that have direct control over workers has passed out of committee.

The House Committee on Education and Workforce advanced the Save Local Business Act, H.R. 4366, with a 20–16 vote along party lines. Rep. James Comer (R-KY) introduced the bill in July to prevent the National Labor Relations Board (NLRB) from reinterpreting the joint employment standard with each new presidential administration, a process that has left businesses uncertain about their responsibilities around collective bargaining and workplace conditions. 

The Save Local Business Act would amend the National Labor Relations Act and the Fair Labor Standards Act to clarify that a company can only be considered a joint employer if it directly and immediately exercises meaningful control over workers’ essential terms and conditions of employment. In 2023, the NLRB under the Biden administration attempted to broaden that definition to encompass any entity that had indirect or even potential control over workers. That version was eventually struck down by a district court in Texas for being so broad that there was effectively no situation where a company would not be considered a joint employer.

With its passage out of committee, the Save Local Business Act will be placed on the House calendar for consideration by the full chamber.