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Opinion

Joe Biden Hurts Small Businesses With New Rules

via NBC News

President Joe Biden’s administration has implemented new labor rules that are negatively impacting small business owners, according to Job Creators Network President Alfredo Ortiz.

The National Labor Relations Board (NLRB) recently announced a new joint employer rule that reduces franchising and contracting opportunities.

Additionally, the Department of Labor is finalizing a rule that would ban certain forms of freelancing and independent contracting.

Ortiz warned, “a series of new labor rules that make entrepreneurship more difficult and, in some cases, illegal,” in a recent Op-ed.

“Last week, the National Labor Relations Board announced a new joint employer rule that reduces franchising and contracting opportunities.This is in addition to a rule the Department of Labor is about to finalize that would ban many forms of freelancing and independent contracting,” explained Ortiz.

The NLRB’s new standard expands the definition of employer, making franchisees and contractors joint employers with their corporate parents.

“As its name implies, the NLRB’s new standard makes franchisees and contractors joint employers with their corporate parents. It expands the definition of employer from the commonsense one of a business that has ‘direct and immediate’ control over employees to one that exercises mere ‘indirect’ or ‘reserved’ control.” confirmed Ortiz.

This change raises liability concerns for corporations, leading to a potential reduction in franchising and contracting opportunities.

Ortiz wrote”As a result, corporations will curtail franchising and contracting opportunities due to liability concerns.”

Ortiz concluded with this: “If, for example, a restaurant or hotel franchisee improperly calculates an overtime payment, or if a janitorial contractor on a job site misses a safety regulation, greedy plaintiff lawyers can sue the corporation, which is now jointly responsible.”

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