Sep 9, 2015 - Dear Chairman Alexander: On behalf of the National Restaurant Association, I want to thank you for your in
September 9, 2015
Lamar Alexander, Chairman Committee on Health, Education, Labor & Pensions U.S. Senate Washington D.C. 20510 Dear Chairman Alexander: On behalf of the National Restaurant Association, I want to thank you for your introduction today of the “Protecting Local Business Opportunity Act.” The National Restaurant Association is the leading business association for the restaurant and foodservice industry. Nationally, the industry is made up of one million restaurant and foodservice outlets employing 14 million people. Despite being an industry of mostly small businesses, the restaurant industry is the nation’s second-largest private-sector employer. As recently as a few weeks ago, some of our members highlighted at House Education and the Workforce hearings the threat the changes to the joint-employer relationship envisioned by the National Labor Relations Board (NLRB) pose to franchisees and franchisors alike. The ongoing attempts by the NLRB to change the joint-employer standard are bad for workers, employers, franchises, and the economy. At another House hearing on June 24, 2014, witnesses were told that there was nothing to fear and that the NLRB would be impartial. In fact, the Committee’s Ranking Member stated, “I’m a little baffled…I don’t think this will be a problem for [Restaurants]…I haven’t heard any evidence that indicates to me that there is any reason to believe that this board won’t be fair minded.” However, the concerns raised by the witnesses were both real and well founded. Less than two weeks ago, in a split 3-2 decision, the NLRB issued a controversial decision in the Browning-Ferris Industries (BFI) case. In it, the majority disregarded the decades old joint-employer standard in favor of a new unclear “indirect control” theory, making employers potentially liable for employees they do not employ—jeopardizing business partnerships in all industries. Once again, I thank you for your leadership on this issue and would like to offer our industry’s help to bring clarity back to the treatment of two or more employers as joint employers under the NLRA. Sincerely,
Angelo I. Amador Regulatory Counsel & Senior Vice President for Labor & Workforce Policy
