Reed Smith Client Alerts

The U.S. House of Representatives sent a bill to the Senate that would redefine, and narrow, the test for determining whether two entities are joint employers. If the bill passes in the Senate, that could signal the end to over thirty years of disagreement—and confusion—about whether a company may be liable for alleged labor law violations brought by a person who was hired and paid by someone else.

Authors: Paige Taylor Bennett

The Save Local Business Act

On November 7, 2017, the U.S. House of Representatives passed a bill to restrict the definition of joint employer under the National Labor Relations Act (“NLRA”) and the Fair Labor Standards Act (“FLSA”). The bill, boldly named the “Save Local Business Act” (H.R. 3441), would amend the National Labor Relations Act and the Fair Labor Standards Act. It would limit liability as a joint employer to those situations where the alleged joint employer “directly, actually, and immediately, and not in a limited and routine manner, exercises significant control over the essential terms and conditions of employment.”