Time to Dance? Momentum Builds for Proposed New Joint Employment Law

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Leadership Lessons from Dancing Guy is a low-quality youtube video that has somehow amassed more than a million hits. In the video, a lone (possibly intoxicated) festival goer starts dancing in a field. After a minute or so, momentum builds and others join him, showing off their terrible dance moves in a video you’ll wish you hadn’t wasted three minutes watching. (Just speaking from experience here.)

Several weeks ago, the House began considering a bill that would rewrite the definition of “joint employment” under federal wage and hour law (Fair Labor Standards Act) and federal labor law (National Labor Relations Act). The Save Local Business Act would require “direct” and “significant” control over “essential terms” of employment before a business could be considered a joint employer of a worker employed by another business (such as a staffing agency or a subcontractor). Read more here and here.

Originally sponsored by Rep. Bradley Byrne of Alabama (you might think of Rep. Byrne as the original dancer in the Leadership video, but dressed as a conservative Southern gentleman), the bill now has 112 co-sponsors, including a few Democrats. Dance party!

The bill continues to gain momentum. On October 4, in celebration of  International Toot Your Flute Day, a House committee voted to advance the bill to a vote by the full House.

The business community has been active and vocal in supporting its passage. On October 26 (National Mincemeat Day!), as part of a coordinated effort by the International Franchise Association, franchise owners from 19 states sent letters to Congressional leaders urging passage of the Act. Other coordinated campaigns in support of the Act have been organized by the U.S. Chamber of Commerce, Retail Industry Leaders Association (RILA), National Waste and Recycling Association, and other pro-business groups.

On October 27, the Congressional Budget Office issued its report on the Act, finding that the Act would not affect direct spending, revenues, or the federal budget.

Chances of passage in the House appear strong, but no floor vote is scheduled. Businesses should follow the status of this bill, which may have profound effects on federal interpretation of the joint employment doctrine.

If the bill passes, businesses might join Mike Myers in celebration, proclaiming “Now is the time on Sprockets when we dance!

[Update 11/8/17:  The House of Representatives approved the bill yesterday by a vote of  242-181, with 8 Democrats voting yes. Passage in the Senate, however, will be far more difficult.]

© 2017 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

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