The Administration Is Ruling by Decree

By Iain Murray – Re-Blogged From The Competitive Enterprise Institute

Yesterday, the Department of Labor unexpectedly issued a new rule (which it called an interpretation) that will upend thousands of businesses’ established practices. It did so with no notice, and no comment by affected businesses is either sought or allowed. Effectively, the administration is now ruling by decree.

The “administrator’s interpretation” is about an obscure categorization of employment called “joint employer.” Such a situation arises when two or more employers are jointly responsible and liable for a worker’s employment conditions. Over the past 40 years or so, new business practices have arisen whereby firms contract out or franchise parts of their business. The Department of Labor (and the National Labor Relations Board) have allowed this, treating the businesses as separate and the employees as having one employer. That is all changing very quickly.

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NLRB Joint-Employer Cases

By Aloysius Hogan – Re-Blogged From Competitive Enterprise Institute

Your salary, purchasing power, and job are on the line as an independent federal agency takes the core American business concepts of franchising, temporary staffing, contracting, sourcing, and outsourcing to court.

Regular Americans stand to lose a lot as some franchises are regulated out of existence. Franchise businesses provide us food, tax preparation, day care, gasoline, and many other products and services. We all know someone who has worked in a temp agency. Businesses commonly outsource accounting and cleaning. Our cars are manufactured with parts sourced from smaller businesses. Our homes are constructed with subcontractors plumbing the bathrooms and wiring the fixtures. All are at risk.

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