Obama-era franchise rule undercuts Trump labor policies

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By Madison Alder and Jaclyn Diaz
Source: Bloomberg BNA
September 5, 2018

The Trump administration’s attempts to change labor policy have been affected by the uncertainty surrounding franchise employment liability, White House adviser Kellyanne Conway told an industry group today.

“Many of the principals that this administration and President Trump and Vice President Pence have put forward are really undercut” because the definition of joint-employer is unclear, Conway said. “That definition’s vagueness really opens it up to too much subjective interpretation.”

The National Labor Relations Board is working on a proposed rule expected to limit the situations in which one business can be required to bargain with—or be held responsible for unfair labor practices against—a related company’s employees. The Labor Department is said to be working on a similar initiative to restrict “joint employer” liability for wage and hour violations.

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