Providing for Congressional Disapproval Under Chapter 8 of Title United States Code, of the Rule Submitted By the National Labor Relations Board Relating to ``Standard for Determining Joint Employer

Floor Speech

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Mr. CASSIDY. Madam President, the Senate will soon vote on the Congressional Review Act resolution of disapproval, hoping to overturn the Biden administration's new joint employer rule. This policy threatens the viability of the American franchise model in favor of coerced unionization.

There are 800,000 franchise businesses operating in our communities. They employ over 9 million Americans. The franchise model has particularly empowered underrepresented groups in the business community, such as women and people of color. This allows them to become a successful business owner, to live the American dream, and to create an opportunity for their own family and for their employees.

President Biden's new joint employer rule threatens this critical business model. It forces legal liability onto franchisers for the labor decisions of individual franchise owners despite the franchiser having no operational authority over the business's employees.

Saddling franchisers with liability for thousands of franchise owners that operate as small businesses is a sure way to destroy the system of franchising. According to the International Franchise Association, when the Obama administration imposed a similar policy, small businesses lost $33 billion per year collectively due to increased liability costs.

The Biden administration's policy has strong opposition from Republicans and Democrats. It is also opposed by over 100 organizations, including those representing small businesses and workers who will be severely impacted.

It is not surprising that the joint employer rule is a major priority for large labor unions. It is easier for unions when they only have to negotiate with one major entity rather than with each individual small business. This allows the union to wield more influence in the collective bargaining process.

President Biden promised to have the most pro-union administration in history. This priority should not be making it easier to forcibly and coercively unionize workers while undermining the business model of the establishments they work for. It should be supporting workers and increasing economic opportunity. Unfortunately, this policy does the opposite. It threatens the jobs of the over 9 million American workers employed by and earning a living from the franchise business model.

I close by encouraging all my colleagues to pass this bipartisan CRA resolution and support those Americans who otherwise would not be able to own a business without the franchise model. Let's stop this harmful overreach that only hurts jobs and economic development in our communities and denies opportunities for Americans seeking a better life.

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