Senator Marshall Fighting for Small Businesses With Joint Employer CRA

Washington, D.C. – U.S. Senator Roger Marshall, M.D. voted to nullify a rule, the Standard for  Determining Joint Employer Status, that was finalized in October by the National Labor Relations Board (NLRB). The rule will harm many small businesses, especially franchises across America. Senator Marshall is an original cosponsor on the Joint Employer CRA, which would nullify the overburdensome rule. 

Joint Employer status is established when two businesses are found to be controlling the working conditions of employees. Having broader joint employer standards would put undue liability on franchisors, forcing them to invade the operations of their franchisees more. This would essentially turn franchisees into corporate middle men.

Senator Marshall has been a leader on this issue, introducing the Save Local Business Act, which codifies narrower joint employer standards. By narrowing the scope of joint employer standards,  franchisees would have more freedom in their operations, and preserve their independence as small business owners.

“I will always fight for our Kansas small businesses and franchises against more red tape and regulations from the federal government. Our small businesses are the backbone of our economy in our state and nationwide,” Senator Marshall said. “I’m proud to join my colleagues in this fight to protect businesses from even more federal standards that could harm them and create uncertainty.” 

This Resolution passed the Senate by a 50 to 48 vote and is now headed to the President’s desk for signature. 

Senator Marshall presented remarks on the Senate Floor on the Joint Employer CRA.

You may click HERE or on the image above to watch Senator Marshall’s full remarks. 

Highlights from Senator Marshall’s remarks include:

“Joint employer rule from the NLRB will crush the franchise model as we know it. It’s going to crash the model of business that brought financial freedom to millions of Americans. What I love about the franchise model is everywhere I go visiting with these owners, it’s been so helpful for minorities, for veterans, for women. These franchises provide a model, the framework on how to be successful, but this new rule from the NLRB would destroy the model as we know it.”

“Now, I’m not sure that Kansas had the first franchise, but in my mind they did – I remember when Pizza Hut started, started by some students out of Wichita State University delivering pizzas to their fellow students. And not long after that came Rent-A-Center, Freddy’s Frozen Custard, Goodcents subs, and many, many more. And that story has been repeated all across the country. These businesses started off small but through franchising, were able to grow into national successes.”

“Now, again, everywhere where I go across the state of Kansas, people want to talk about inflation. But what’s becoming more prominent, especially to a business owner is regulations, just that this overburden of regulations that’s keeping us all down and driving up the cost of doing business. More regulations means more money, more cost to that owner.”

“We need less regulations, not more regulations. This definition is overly broad. And this rule threatens the success stories for all those happy endings, for all those American dreams that have become true. Instead of being independent business owners, franchisees will be reduced to middle managers – killing jobs, killing income as well. This rule attempts to trigger joint employer status if two employers share the essential terms and conditions of employment, then talks about indirect control as one of these terms and conditions.”

“So instead of making overly broad and burdensome rules, we should pass bills like our own Save Local Business Act, which provides clear and consistent standards for triggering joint employment status. I ask my colleagues to join us in supporting the CRA, this rule from the federal government is a solution in search of a problem.”