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NLRB Joint Employer Rule: On October 26, the National Labor Relations Board (NLRB) issued its final rule addressing the Standard for Determining Joint-Employer Status under the National Labor Relations Act. The rule, which would dramatically expand the joint-employer standard, was met with widespread criticism from policymakers in Washington and the business community across the country.
In response, on November 7, U.S. Representatives John James (R-MI-10), Virginia Foxx (R-NC-5), chairwoman of the House Education and the Workforce Committee, and Speaker of the House Mike Johnson (R-LA-4), as well as U.S. Senators Bill Cassidy (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Joe Manchin (D-WV) and Senate Minority Leader Mitch McConnell (R-KY) introduced a Congressional Review Act (CRA) resolution to overturn the new rule.
Congress can use the CRA to overturn final rules issued by federal agencies. Any member of Congress can introduce a joint resolution disapproving of a final rule and Congress then has 60 days of continuous session from the date a rule is submitted to use the procedure. A simple majority in both chambers is then needed to send the measure to the president’s desk. If vetoed, a two-thirds majority in both chambers is necessary to override; if signed into law or Congress overrides the veto, the rule is prohibited from either going into effect or continuing in effect.
Further, on November 9, a coalition of business groups filed suit against the NLRB in the U.S. District Court for the Eastern District of Texas challenging the agency’s recently released rule. The full complaint can be viewed here. The NLRB subsequently extended the rule’s effective date to February 26, 2024 to facilitate resolution of the legal challenges.
Senate HELP Committee Hearing: On November 14, the Senate Health, Education, Labor, and Pensions (HELP) Committee held a hearing entitled “Standing Up Against Corporate Greed: How Unions are Improving the Lives of Working Families.” Several union leaders were invited to testify, including the United Auto Workers (UAW), Teamsters, and Association of Flight Attendants-Communication Workers of America (AFA-CWA). Democrats on the committee decried wage inequities and corporate greed in the broader economy, while Republicans generally criticized compulsory union participation and the effects of unionization on small businesses. Most observers from the business community believe the title of the hearing reflects the predisposition of the Committee’s chair, Senator Bernie Sanders (I-VT), to look favorably upon union participation.