Joel Libava
In a significant move, U.S. Senator Manchin (D-WV) has lauded the Senate’s approval of the bipartisan Congressional Review Act (CRA) resolution aimed at reversing the National Labor Relations Board’s (NLRB) Joint Employer Rule. And that will help franchising.
This rule holds companies accountable for the employees of another business, even if they don’t directly supervise them.
Senator Joe Manchin, along with Senator Bill Cassidy, M.D. (R-LA), initiated the CRA resolution back in November 2023. The Senate endorsed the resolution with a bipartisan vote of 50 to 48, and it is now awaiting President Biden’s approval.
Here’s Senator Joe Manchin speaking about the NLRB Joint Employer Rule and Franchising on the Senate Floor:
Senator Manchin And Franchising
Senator Manchin, advocating for the resolution on the Senate floor, emphasized the vital role of small businesses, particularly in West Virginia, where over 98% of businesses are small-scale enterprises. He expressed concerns that the NLRB’s joint employer rule would impede entrepreneurship and economic growth, urging President Biden to acknowledge the bipartisan rejection of this rule.
Senator Cassidy also underscored the adverse impacts of the joint employer rule on franchisers and franchise owners, highlighting how it could undermine the franchising system. A system which has historically facilitated opportunities for underrepresented groups in the business community.
The House of Representatives, led by Representative John James (R-MI), supported the companion CRA resolution in January 2024, further signaling bipartisan disapproval of the NLRB rule.
Manchin’s Efforts Are Important To The Franchising World
Senator Manchin’s efforts to challenge the joint employer rule have been ongoing, with a detailed timeline provided for reference. Additionally, a video recording of his Senate speech is available for viewing.
In his prepared remarks, Senator Manchin condemned the NLRB’s rule as an instance of executive overreach and partisan politics. He stressed the detrimental effects on small businesses, particularly exacerbated by the COVID-19 pandemic, and emphasized the importance of preserving the franchise model as a pathway to entrepreneurship for many Americans.
Ultimately, the resolution aims to alleviate confusion and uncertainty among small business owners and franchisees, reaffirming that businesses should not be held liable for entities they do not directly control.
Finally, Senator Manchin’s advocacy reflects a commitment to protecting Main Street businesses (including franchise businesses), and fostering economic growth through bipartisan cooperation.
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