Mr. Speaker, I thank the ranking member for yielding and for his continued leadership on behalf of America's workers. Mr. Speaker, more and more employees today are working for a company whose name is not on the front of their office…
Mr. Speaker, I thank the ranking member for yielding and for his continued leadership on behalf of America's workers.
Mr. Speaker, more and more employees today are working for a company whose name is not on the front of their office building. Instead of hiring employees directly, companies are renting employees from staffing agencies. Let me say that again. Companies are renting employees from staffing agencies and then evading responsibility for upholding the rights of those workers, even as they profit from their work.
For decades, sensible joint employment standards under the Fair Labor Standards Act have ensured that workers can hold employers accountable for violating wage and hour laws.
Instead of refining those standards to reflect the complex relationship between workers and employers in today's economy, this legislation sets a dramatically and intentionally narrow standard so that no large corporation can be held accountable if their contractors violate workplace laws.
Mr. Speaker, I include a letter of support in the Record, a letter by the National Employment Law Project and signed by more than 200 organizations opposing H.R. 3441 because it opens the door to widespread wage theft and hurts law-abiding small businesses.
Hon. Paul Ryan,
House of Representatives,
Washington, DC.
Hon. Nancy Pelosi,
House of Representatives,
Washington, DC.
Hon. Virginia Foxx,
House of Representatives,
Washington, DC.
Hon. Robert C. Scott,
House of Representatives,
Washington, DC.
Dear Speaker Ryan, Leader Pelosi, Chairwoman Foxx and
Ranking Member Scott: The undersigned organizations write in
opposition to H.R. 3441, the so-called Save Local Business
Act, which would amend the Fair Labor Standards Act (FLSA)
and the National Labor Relations Act (NLRA) to prevent
workers from holding more than one employer jointly
accountable for wage theft, child labor, equal pay
violations, or unfair labor practices even when the employers
jointly exercise and share control over working conditions.
Under our nation's long-standing laws dating back as far as
the late 1800s, employers who share control with their
subcontractors over working conditions may also share
accountability as joint employers for violations of workers'
rights so that they will provide better oversight of working
conditions, and in so doing, ensure broader compliance with
basic labor and employment laws.
H.R. 3441 seeks to dramatically narrow the long-standing
definitions of ``employer'' in the FLSA and NLRA and it is
neither good for workers nor for law-abiding businesses.
H.R. 3441 opens the door to widespread wage theft and worker harms in
occupations across the economy, including in our nation's growth
industries
The bill would undermine protections for millions of
workers across the economy, especially in low-wage sectors
where subcontracting is common: construction, agriculture,
garment, janitorial, home care, delivery and logistics,
warehousing, retail, temp and staffing, and manufacturing,
just to name a few.
Wage theft and other workplace dangers are prevalent in
many of these jobs, and even under current law, millions of
workers today are no longer sure who their boss is--and
indeed, have no way to navigate the intricacies of companies'
contracting relationships to ascertain who is responsible for
workplace violations. When there's no clear line of
accountability, work conditions are more likely to
deteriorate: pay declines, wage theft increases, and
workplace injuries rise. In addition, outsourced jobs pay
less--sometimes as much as 30 percent less--than in-house
jobs, likely due to a lack of worker and subcontractor
bargaining power. In today's economy, we should be looking
for ways to increase workers' pay and economic security, not
laying the groundwork for more sweatshops.
When a subcontractor cannot pay, joint employer standards
ensure that workers have remedies against the contracting
company for the legal violations. Workers should be able to
recover when cheated out of wages, exposed to dangerous
working conditions, or otherwise treated unlawfully.
This bill would also impede workers from bringing equal
pay claims to close the gender pay gap. Because the Equal Pay
Act is a part of the FLSA, and uses the FLSA's definition of
an employer, H.R. 3441 would make it harder for subcontracted
workers to hold their employers accountable for gender-based
pay discrimination.
The bill actually hurts, not helps, law-abiding small businesses
Although framed as a bill to help protect the independence
of small businesses, including those that operate as
franchisees, the bill would in fact insulate corporations,
including franchisors, from liability. Unscrupulous
businesses that employ abusive labor contractors to cheat
workers would gain a competitive advantage over law-abiding
businesses. In addition, franchisees whose business practices
are all but dictated to them by larger corporations will be
hung out to dry for decisions that aren't their own, without
any indemnification from the entity that often all but forces
labor and employment violations on them.
Corporations that engage low-road contractors and then look
the other way gain an unfair advantage over companies that
play by the rules, resulting in a race to the bottom that
rewards cheaters. It's one reason why the job quality of what
were formerly middle-class jobs in America is suffering
today. Working people struggle enough in today's economy.
Don't let Congress make this worse by legislatively rigging
the system in favor of corporations that don't care about the
workers who build their businesses. Oppose H.R. 3441.
Sincerely,
9to5 Colorado; 9to5 Wisconsin; 9to5, National Assoc of
Working Women; A Better Balance; Advocates for Basic
Legal Equality, Inc.; AFL-CIO; American Federation of
State, County and Municipal Employees (AFSCME);
American Federation of Teachers, AFL-CIO; Arizona
Employment Lawyers Association; Asian American Legal
Defense and Education Fund; Barkan Meizlish LLP;
Bricklayers & Allied Craftsmen Local 3 MA/ME/NH/RI;
California Employment Lawyers Association; Center for
Law and Social Policy (CLASP); Center for Popular
Democracy; Center for Worker Justice of Eastern Iowa.
Centro de los Derechos del Migrante, Inc. (CDM); Centro
Legal de la Raza; Change to Win; Chicago Jobs Council;
Cincinnati Interfaith Workers Center; Coalition for
Social Justice; Coalition of Labor Union Women;
Coalition on Human Needs; Colorado Fiscal Institute;
Columbia Legal Services, Washington State;
Communications Workers of America (CWA); Community
Labor United; Community Legal Services in East Palo
Alto; Community Legal Services of Philadelphia;
Community, Faith & Labor Coalition, Indianapolis;
Congregation of Our Lady of Charity of the Good
Shepherd, US Provinces.
Congregation of Our Lady of the Good Shepherd, US
Provinces; Connecticut Legal Services, Inc.; Council on
American-Islamic Relations (CAIR); Democratic
Socialists of America; Demos; Disciples Center for
Public Witness (Disciples of Christ); Economic Policy
Institute Policy Center; Economic Progress Institute;
El Comite de Apoyo a los Trabajadores Agricolas;
Employee Rights Center; Equal Justice Center;
Equal Rights Advocates; Fair Work Center; Fair World
Project; Faith and Justice Worker Center; Family Values
@ Work; Farmworker Association of Florida.
Farmworker Justice; Florida Legal Services, Inc.; Food
Chain Workers Alliance; Forward Community Investments;
Franciscan Action Network; Friends Committee on
National Legislation; Fuerza del Valle Workers' Center;
Fuerza Laboral; Futures Without Violence; Genesis
Masonry Contracting, LLC; Getman, Sweeney & Dunn, PLLC;
Good Jobs First; Good Jobs Nation; Greater Boston Legal
Services; Greater Hartford Legal Aid, Inc.
Greater Rochester Coalition for Immigration Justice;
Greater SE Mass Labor Council; Hardin & Hughes, LLP;
Head Law Firm, LLC; Hudson Valley Justice Center;
Immigrant Solidarity DuPage, Casa DuPage Workers
Center; Immigrant Worker Center Collaborative (IWCC);
In The Public Interest; Indianapolis Worker Justice
Center; Interfaith Coalition for Worker Justice of
South Central WI; Interfaith Worker Justice;
International Brotherhood of Teamsters; International
Federation of Professional & Technical Engineers
(IFPTE); International Union of Painters and Allied
Trades District Council 35; IWJSD.
Jewish Community Relations Council, Milwaukee; Jobs With
Justice; Justice in Motion; Kansas City Workers' Rights
Board of Missouri Jobs with Justice; Kentucky Equal
Justice Center; Kids for College; Kids Forward; Labor
Justice Committee; Labor Project for Working Families;
Laundry Workers Center; Lebau and Neuworth; The
Leadership Conference on Civil and Human Rights; Legal
Aid at Work; The Legal Aid Society.
Legal Services of Central New York; Legal Voice; Local 3,
Bricklayers & Allied Craftsmen; Los Angeles Alliance
for a New Economy; Madison-area Urban Ministry; Main
Street Alliance; Maine Labor Group on Health; Maine
Women's Lobby; Maintenance Cooperation Trust Fund;
Massachusetts Coalition of Domestic Workers;
Massachusetts Interfaith Worker Justice; Massachusetts
Law Reform Institute; MassCOSH (Massachusetts Coalition
for Occupational Safety & Health); Mechanic Law Firm,
Portland OR; Metrowest Worker Center; Miami Workers
Center.
Michigan League for Public Policy; Missouri Jobs with
Justice; Moms Rising; NAACP; National Advocacy Center
of the Sisters of the Good Shepherd; National Asian
Pacific American Women's Forum (NAPAWF); National
Center for Law and Economic Justice; National Center
for Transgender Equality; National Council for
Occupational Safety and Health; National Council of
Churches; National Domestic Worker Alliance; National
Education Association; National Employment Law Project;
National Employment Lawyers Association; National
Guestworker Alliance; National Immigration Law Center.
National LGBTQ Task Force; National Partnership for Women
& Families; National Women's Law Center; National
Workrights Institute; NETWORK Lobby for Catholic Social
Justice; New Haven Legal Assistance; New Jersey Citizen
Action; New Jersey Policy Perspective; New Jersey Time
to Care Coalition; New Jersey Work Environment Council;
New Labor; New Mexico Center on Law and Poverty; New
Mexico Voices for Children; North Carolina Justice
Center; NWA Workers' Justice Center; Oregon Center for
Public Policy.
Oxfam America; Patriotic Millionaires; Phillips Dayes Law
Firm PC; Pilipino Workers Center of Southern
California; Policy Matters Ohio; PolicyLink; Pride at
Work; Progressive Congress Action Fund; Project IRENE;
Public Citizen; Public Justice Center; Restaurant
Opportunities Centers United; Safe Harbor Law, LLC;
Sargent Shriver National Center on Poverty Law; SE Mass
Building Trades Council; SEIU Local 888.
Service Employees International Union; South Central
Federation of Labor, AFL-CIO; South Florida AFL-CIO;
South Florida Interfaith Worker Justice; Southern
Poverty Law Center; St. Louis Workers Rights Board,
Missouri Jobs with Justice; Stephan Zouras, LLP;
Teamsters Joint Council 7; Teamsters Local Union 350;
Teamsters Local Union 469; The Commonwealth Institute
for Fiscal Analysis (Virginia); The Law Offices of
Gilda A. Hernandez, PLLC; The North Dakota Economic
Security and Prosperity Alliance; The Rhode Island
Center for Justice; The Stolarz Law Firm; The Warehouse
Worker Resource Center.
UltraViolet; Union for Reform Judaism; Union of Rutgers
Administrators, AFT Local 1766; Unitarian Universalist
Association; United Auto Workers (UAW); United
Community Center of Westchester, Inc.; United Food and
Commercial Workers International Labor Union; United
Food and Commercial Workers Union Local 1445; United
Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied; Industrial and Services Workers
International Union (USW); Washington State Budget &
Policy Center; Wayne Action for Racial Equality;
WeCount!; Werman Salas PC; West Virginia Center on
Budget and Policy; Winebrake & Santillo, LLC.
Wisconsin Alliance for Retired Americans; Wisconsin
Alliance for Women's Health; Wisconsin Coalition
Against Sexual Assault; Wisconsin Community Program
Association (WISCAP); Wisconsin Council of Churches;
Wisconsin Faith Voices for Justice; Wisconsin Network
for Peace, Justice, and Sustainability; Women Employed;
Women's Law Project; Workers' Center of Central New
York; Workers Defense Project; Workers' Rights Center
of Madison WI; Workers' Rights Project, Main Street
Legal Services. Inc; Working Families Party; Working
Partnerships USA; Workplace Fairness; Workplace Justice
Project at Loyola College of Law Clinic; Worksafe; WV
Citizen Action Group; Yezbak Law Offices.
Mr. Speaker, from 2001 to 2013, Wal-Mart was contracting with three warehouses in my community, and those warehouses contracted out their staffing to a company that was accused of committing egregious wage and hour law violations.
Thanks to the FLSA joint employer standard, 1,700 warehouse workers were able to reach a $22 million settlement to collect the pay that they were owed from their employer. Under this bill, they would likely have gotten nothing.
The questions we face today are: Will millions of workers, like the warehouse workers in my district, lose what little power they have left to fight against wage theft; will organized workers lose the basic right to bring all responsible parties to the table to collectively bargain for better wages and workplaces; will shrewd corporations be allowed to claim immunity from the laws that protect employees; and, most of all, will the people's House stand with the people or stand with the corporations that continue to rig the economy against the American worker?
Mr. Speaker, I strongly urge my colleagues to oppose H.R. 3441.