AAHOA President and CEO Chip Rogers released the following statement regarding the Senate Committee on Small Business and Entrepreneurship hearing on the joint employer standard.
“Today’s hearing on the joint employer standard was enlightening. From both a franchisor and a franchisee perspective, the negative consequences of the NLRB’s expansion of joint employer were laid on the table by the witnesses, such as a franchisor testifying that she felt forced to refuse help to her new franchisee for fear of being found to be a joint employer, and a franchisee testifying that her legal costs tripled in the last year, which hurts her ability to expand her business and create new jobs.
“The joint employer decision in Browning-Ferris, coupled with the arguments made by the NLRB in pending cases, will cripple small businesses and the massive number of jobs they’re responsible for. We applaud Sen. Vitter for holding this hearing today urge all lawmakers to consider reasonable solutions.”