Mr. Speaker, for purpose of debate only, I yield the customary 30 minutes to the gentleman from Virginia (Mr. Scott), the ranking member on the Committee on Education and the Workforce, pending which I yield myself such time as I may…
Mr. Speaker, for purpose of debate only, I yield the customary 30 minutes to the gentleman from Virginia (Mr. Scott), the ranking member on the Committee on Education and the Workforce, pending which I yield myself such time as I may consume.
General Leave
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the veto message on H.J. Res. 98.
Mr. Speaker, I rise today in support of overriding President Biden's veto of H.J. Res. 98. A vote in favor of this resolution will nullify the Biden administration's attempt to redefine what it means to be a joint employer under the National Labor Relations Act.
After receiving bipartisan support from both Chambers, Congress sent H.J. Res. 98 to the President's desk showing our broad disapproval of the new joint employer rule. Now, with President Biden's veto, the message from the administration is clear: Franchise businesses are not welcome partners in the Biden economy.
In fact, the Biden administration wants to return to the harm done during the Obama-Biden administration, when this rule was first in effect and cost the economy more than $30 billion and nearly 400,000 jobs on an annual basis for the 5-year period until President Trump, thankfully, reversed the rule.
It also benefited the Democrats' favorite trial lawyers when lawsuits against franchise businesses increased by 93 percent.
The joint employer rule overturns legal precedent that was in place from 1984 to 2015. It is a direct attack on the thousands of small businesses that make up the healthy and growing franchise sector.
Currently, a business is considered an employer only if they exercise direct and immediate control over an employee's essential terms and conditions of employment. However, the new rule establishes that two or more businesses are in a joint employer relationship if one employer merely exercises indirect control over another company's employees.
Under this standard, something as simple as a franchisor giving a franchisee a company handbook could be interpreted as exercising indirect control.
Changing the definition of who controls a business creates confusion and threatens the independence of so many successful small business owners.
Biden's rule will saddle franchisors with liability for independent franchise owners, over which they do not have control. Inevitably, the result of this rule will be less growth, more lawsuits, and the functional transformation of businessowners into middle managers.
It is already very difficult to operate a small business today in Biden's America. The administration's response to high inflation, low workforce participation, and high interest rates, which are causing so much economic hardship from Bidenomics, is to aggressively pursue an anti-employer, antiworker, pro-union-boss agenda.
We must protect the model that is currently working for businesses and eliminate the threat of this new rule.
Mr. Speaker, I urge my colleagues to vote in favor of overriding the President's veto of H.J. Res. 98, and I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this is and always will be about labor unions. That is essentially what my friend from the Commonwealth of Virginia just said. However, we need to go back to pro-growth policies when real wages were growing for everyone, when unemployment was at a record low for everyone, and there were millions more Americans working during the Trump administration.
Bidenomics and Bidenflation don't work. This is a recession back into the past here. It is not going to work. We are not responsible for what the Senate does, Mr. Speaker. We are not responsible for what the White House does. The Senate actually agreed with us on this on a bipartisan basis, and the House did this on a bipartisan basis.
Mr. Speaker, I yield 5 minutes to the gentleman from Michigan (Mr. James).
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I have to hand it to my friend from Virginia. He is resilient, but he has got a tough job trying to defend the economic record of the current administration.
We have got some 4 million people less working than were working when he became President. Everyone knows that under the previous administration, again, we had record-low unemployment and record-high labor participation. Now we have a record-low labor participation rate.
We had unemployment that was at record lows for everyone during the previous administration and real wage growth under the previous administration.
Now we have 40-year high inflation. Inflation was nonexistent before this President got into office. We have 20-year high interest rates which are further crushing the American people. We have got our credit being downgraded because of the reckless, excessive, wasteful, and unprecedented spending which will cause interest rates to go even higher.
Mr. Speaker, you can't fool the American people. You can't tell them it is good when they know that it is bad. They are suffering at the grocery store, they are suffering when they pay the utility bill, they are suffering at the gas pump, they are suffering when they make the mortgage payment or when they make the rent payment, and they are suffering when they are unable to afford to buy a home, especially for young people starting out.
This is all a direct result of bad policy from this President. This is just one more example as he vetoes the will of the American people reflected in a bipartisan manner by both Houses of Congress sending him legislation to overturn this rule, and yet he has vetoed it and has forced us to try to overcome his veto today.
Mr. Speaker, I am prepared to close if the gentleman from Virginia is prepared to close, and I reserve the balance of my time.
Mr. Speaker, I yield myself the balance of my time to close.
Mr. Speaker, my friend from Virginia said it himself. The unions, the Teamsters and the steelworkers, are for this. That is reason enough to oppose this.
We talked about the credit being downgraded. It is unprecedented in the country, twice to have our credit downgraded during this President's time in office.
The previous President had record job growth and a roaring economy until the pandemic hit. Under this President, of course, some of the jobs that were lost in the pandemic have been recovered, but not all of them.
Again, we have a record-low labor participation rate, meaning the percentage of those able-bodied, working-age Americans who are working is at an all-time low. We don't count those individuals who aren't looking for work in the unemployment numbers. They don't count. You have an artificially low so-called unemployment rate because there are record numbers of Americans on Federal assistance, as we have stripped away all the work requirements for cash welfare, for food stamps, and for housing assistance.
While we on this side measure success by how many people we get off of government assistance, the other side measures success by how many people are on government assistance programs as my colleagues on the other side of the aisle continue to try to grow the amount of people who are paid not to work, which further causes economic harm.
We cannot just cut our spending on our way to prosperity. Again, in this country, we have to grow our way by going back to pro-growth policies.
Mr. Speaker, in testimony before our committee on this issue, the president of the International Franchise Association said: The rule would make franchisees merely employers of and/or co-employers with their franchisor. This will significantly diminish the value of the business that they have spent their entire careers building.
We know his statement is true because we have seen this policy play out before. Years ago, when President Obama's NLRB advanced a similar rule, the International Franchise Association conducted a study on its impact, and research showed that the indirect control standard cost the industry, as my friend from Michigan said, as much as $33 billion annually, killed almost 400,000 jobs, and, once again, increased lawsuits against franchise businesses by 93 percent.
The franchise model represents an opportunity to pursue the American Dream. Congress must stand up for the 9 million franchise workers across the country and override President Biden's veto.
Mr. Speaker, I yield back the balance of my time.