Chairman Chabot Commends House Passage of Save Local Business Act

Statement

Today, House Committee on Small Business Chairman Steve Chabot (R-OH) released the following statement upon House passage yesterday of H.R. 3441, the Save Local Business Act, legislation that will reverse an Obama-era scheme that threatens small businesses. Chairman Chabot is an original co-sponsor of the bill and, earlier this year, sent a letter to the House Education and Workforce Committee in support of H.R. 3441.

"Small businesses have been hurting under this rule for years and it's time we put an end to it. Under the new standard, a potential small business owner may avoid buying a franchise because of the risk of being punished for the actions of a franchiser. It has also created a lot of confusion and unnecessary challenges for job creators that just want to grow their companies," said Chairman Chabot. "Today's vote will restore certainty to America's small business owners and their employees so they can continue to operate their businesses locally and independently. Enacting this legislation will help ensure continued freedom for America's best job creators."

The Committee first held a roundtable in April 2015 on the emerging issue. NLRB then expanded its definition of the joint employer standard in August 2015. In March 2016, the Committee held a hearing titled, "Risky Business: Effects of New Joint Employer Standards for Small Firms" to examine the direct impact of the rule on small businesses.

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