Regulatory Action Center Files Comment in NLRB Employer Rulemaking

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On December 7, 2022, FreedomWorks Foundation’s Regulatory Action Center submitted a comment concerning the National Labor Relations Board’s (NLRB) proposed Joint Employer rule. 

This proposed rule would make it very difficult for franchise (“chain”) businesses and businesses that use subcontractors (such as janitorial services to clean offices or specialized labor on construction sites) to use those business models. Like much of what the “swampy” federal bureaucracy does, it’s an obscure rule with devastating economic impact.

If you are a consumer, the proposed rule will take money from your pocket by increasing the cost of your meal at a franchise restaurant, such as McDonald’s or Applebee’s. It will increase other costs, too, such as the cost of new homes.

If you own–or aspire to own–a local franchise, the NLRB rule will mean that you are merely an employee of the chain business, not a business owner. This will deprive Americans a chance to build wealth and support their families–which government should be encouraging, not discouraging.

National franchise companies will dramatically reduce the support and training they give to their local franchisees, for fear of being deemed a “joint employer.” This means that franchise companies will look for experienced businesspeople with significant resources as franchisees; companies will be less willing to take a chance on someone just starting out. 

Why is Biden doing this? To pay back two of his biggest supporters: Big Labor unions and trial lawyers. Biden’s rule would make it easier for Big Labor to organize fast-food restaurants.

Biden’s rule would mean that the franchise companies are responsible for all the violations of their franchisees, providing “deep pockets” for trial lawyers to go after.

A total of 494 FreedomWorks activists submitted their own comments.