U.S. Labor Board to Ease Companies' Liability for Contractors'
The five-member National Labor Relations Board has proposed a rule that would restore an earlier standard for joint employers, rolling back a standard that made it easier to hold companies liable for illegal labor practices by their contractors and franchisees. Under the proposal, companies are considered to be so-called joint employers with their contractors or franchisees only when they exercised direct control over labor issues such as hiring or firing workers and setting wages. Robert Cresanti, president of the International Franchise Association, said the Obama-era standard created confusion and uncertainty for franchise operators, and the proposed rule would create "clear lines" for companies to follow. The board said its proposal would be formally published on Sept. 14, kicking off a 60-day public comment period.