Senate Passes Joint Employer CRA! 

Senate Passes Joint Employer CRA!  On April 10, the Senate passed H.J. Res 98, a Congressional Review Act (CRA) resolution to nullify the NLRB’s joint employer final rule, by a vote of 50-48. CDW’s statement on the vote can be viewed here.

Senators Manchin (D-WV), King (I-ME), and Sinema (I-AZ) crossed party lines to vote in favor of the resolution and support small businesses. Disappointingly, Senator Hawley (R-MO) voted against the resolution, while Senator Lee (R-UT) decided to miss the vote, both of whom chose not to protect small businesses in their states and nationwide.

The resolution passed the House in January, where it also enjoyed bipartisan support. It is now headed to President Biden’s desk for his signature. Unfortunately, the administration announced that the president intends to veto the resolution, which President Biden has 10 days (excluding Sundays) to do. If the CRA is vetoed, Congress would need a two-thirds majority in both houses of Congress to override the veto. If signed into law, however, the NLRB’s final rule would be nullified, and the Board would be prevented from issuing any substantially similar rule in the future.

Minority Leader McConnell (R-KY) made excellent remarks on the Senate floor before the vote: “The new standard amounts to more regulatory red tape threatening the very existence of small businesses, especially those that follow the franchise model… this new labor rule would add even bigger headaches and turn small business owners – including many in my home state of Kentucky – into middle managers.”

The lead sponsors of the resolution, Manchin (D-WV) and Senator Cassidy (R-LA) also released statements in response to the vote:

“Saddling franchisers with liability for thousands of franchise owners that actually operate the day-to-day activities of small business would be a sure way to destroy the system of franchising. This model has empowered those underrepresented in the business community, such as women and people of color, to become successful small business owners and create jobs for others... The Biden administration should support workers and increase economic opportunity, not make it easier to forcibly and coercively unionize workers while undermining the business model of the establishments they work for.” - Sen. Cassidy (R-LA)

“The NLRB’s joint employer rule would shut the door for thousands of citizens who want to start a business and fulfill the American Dream when we should be focused on bolstering our economic growth and empowering Main Street America. I’m glad our CRA resolution has now passed both the House and the Senate and I encourage President Biden to accept this bipartisan, bicameral rejection of this confusing and unnecessary rule.” - Sen. Manchin (D-WV)