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Congressman Drew Ferguson (R-Ga.) today voted to pass the Save Local Business Act. This bill would update the National Labor Relations Act and Fair Labor Standards Act to provide clarity on the definition of “joint employer.” This legislation would codify that a business is only a joint employer of a worker if it has direct, actual and immediate control of the employee. Ferguson is an original cosponsor of the bill.

“The National Labor Relations Board’s decision to redefine the definition of joint employer ignored decades of settled labor policy and created ambiguity that threatens job creation, increases costs and discourages entrepreneurs from opening up new businesses,” said Ferguson. “I’ve heard from dozens of business owners in my district that have faced uncertainty under the expanded joint employer definition. This legislation would take the necessary steps to reinstate this common-sense standard that has been widely-accepted for decades.”

The bill passed by a vote of 242-181.

To watch Congressman Ferguson speak in support of the bill, click here.

Background: The Save Local Business Act was introduced in response to a 2015 decision in which the National Labor Relations Board redefined what it meant for two separate entities to be considered a joint employer of a worker. The new definition opened up the liability for an entity to be considered a joint employer, even if they only had indirect or potential control over another’s workforce.

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