The Legal experts and advocates nationwide press says that Congress for immediate action to solve an issue for good as a top labor board repealed a decision imposed by the Former President Obama and his administration.
The National Labor Relations Board that overlooks all the unions, screens the elections, and resolves the workplace disputes went on to reverse a model that is being followed since 2015, to hold the parent companies responsible for all the workplace violations that a franchisee is responsible for. The decision had caused an uproar from the parent businesses who were at a loss to understand how they were supposed to manage the day-to-day operations and workplace policies.
But a 3-2 vote with a republican majority ended the rule on Thursday and restored it to its previous standard, ruling that made it necessary for the employer to be in direct charge of the workplace in order to be held accountable for violations at a workplace. The NLRB further said that this was essential as it is important for “promoting stability and predictability in bargaining relationships.”
It further said, “Proof of indirect control, contractually-reserved control that has never been exercised, or control that is limited and routine will not be sufficient to establish a joint-employer relationship.”
The reversal was met by praise and appreciation from all over the nation’s businesses and managerial side of the labor.
Michael Lotito, who is a veteran attorney, went on to say that the board’s new ruling would provide the employers with much more conviction over their dealings with their employees and direct it in an agency that had rapidly gone beyond the letter of the law. He also criticized the 2015 NLRB for exceeding the authority that was assigned to them by creating a policy, instead of reinforcing pre-existing rulings provided by Congress in the National Labor Relations Act and Fair Labor Standards Act.
“Agencies are making law that Congress should be enacting,” he said in a statement. “What the board did was a very welcome development. What is disconcerting is why [the new ruling] was necessary. … The agency is supposed to be subservient to Congress, accountable to them and they’ve evolved in a way that is accountable to no one.”
Senator Lamar Alexander, chairman of the Senate Committee on Health, Education, Labor, & Pensions, went on and praised the decision. He went on to say that the largest issue for the new administration was to take out young entrepreneurs who never had any access to the expensive insurance and attorneys in favor of a larger, more established employers.
The reversal, he said, would let the smaller business owners access the marketplace.
“The Obama NLRB’s decision changing the joint employer standard was the biggest attack on the opportunity for small businessmen and women to make their way into the middle class that anyone has seen in a long time—threatening to destroy the American Dream for owners of the nation’s 780,000 franchise locations,” Alexander said in a statement. “Our committee worked to confirm two board members this year with the goal of restoring fairness to the board, and today’s decision by the Board in the Hy-Brand Industrial Contractors case is good news for all Americans.”
