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. MANCHIN. Madam President, I rise today, and I agree with my friend and my colleague from Indiana Senator Braun, my friend and my colleague from Louisiana Senator Cassidy, and my friend and my colleague from Kansas Senator Marshall.

I rise today in support of the joint resolution of congressional disapproval to overturn the National Labor Relations Board's new joint employer rule.

This rule is just another example of Executive overreach and the partisan politics that we deal with all too often.

Small businesses are the heart of our economy, from the States like myself in West Virginia--small, rural States. This is the backbone of our business society. And especially, we have 98 percent of our businesses are small in West Virginia. I don't have one city in my State with a population greater than 50,000. So I am 1.7 million of small towns and cities. This is who we are.

The COVID-19 pandemic was hard on small businesses and franchises, with an estimated 32,700 franchise businesses closing during the first 6 months of the pandemic. The last thing they need is greater uncertainty caused by this rule.

And the joint employer rule has caused confusion for franchise owners for years--telling them they could be held liable for actions taken by businesses with their brand, potentially subjecting them to corporate control.

Franchising is a pathway to entrepreneurship for Americans across the country, and it helps build generational growth. By providing access to capital, training, managerial assistance, and a system of support, which is so needed in small rural areas, the franchise model helps many Americans overcome the numerous barriers to owning their own business-- for the first time, the dream coming true of having your own business and controlling your destiny.

One out of every three franchise owners say they wouldn't own a small business without the franchise business model that they buy into. The unique model is used by over 5,000 independent businesses in my State of West Virginia, providing over 45,000 jobs.

This new rule has further confused the issue and put the franchise model at risk. Under this rule, businesses are liable for entities they do not control. I repeat: Under this rule, businesses will be liable for entities that they do not control. And it makes no sense.

Let me give you an example. If under this brand there are uniform standards for their products or they would require hair nets to be worn, they would then be found as a joint employer. It is as simple as that, if that is part of the model that you buy into, part of the franchise you bought has certain requirements to deliver products safely and healthfully.

This is despite the fact that they have no responsibility--no responsibility--or role in hiring, firing, or wage decisions for the employees in any way, shape, or form.

Does that make any sense? It just doesn't.

Franchisees, for years, have enjoyed the independence of running their own businesses and making their own decisions about their employees, working with their employees in joint relationships. If a franchisor is now held responsible for these decisions, the franchise model will essentially no longer exist. The guidelines won't be there because they are totally liable and responsible.

The bottom line is, this rule will shut the door on thousands of Americans who want to start--or maybe already have--a business and fulfill the American dream. That is why I introduced the Congressional Review Act with the Senators whom I just mentioned and our colleagues to make clear this rule does not work.

Businesses should not be liable for entities they do not control. The National Labor Relations Board moved forward on this rule without bipartisan support, and I can assure you they did not have my partisan support.

A member of the Board even found that this rule would be ``even more catastrophic'' than previous attempts to change the standard and potentially ``harmful to our economy.'' We know previous attempts to change the joint employer standard resulted in a 93-percent--I repeat again, 93-percent--increase in litigation, a loss of over 376,000 job opportunities, and were eventually struck down by the courts.

This doesn't work. The courts have already ruled it doesn't work. And it will happen again, but here we go. Here we go.

We should be focused on bolstering our economic growth and protecting Main Street businesses, not obstructing them.

I am standing here today for the thousands of small businesses not only in my State but across the country. There are hard-working employees in the surrounding communities who are going to be harmed by this rule.

I encourage my colleagues on both sides of the aisle, my friends on both sides, Democrat and Republican, basically to vote yes on this resolution and allow us to continue to work towards a bipartisan, commonsense solution instead of a more partisan, political position.

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