Mr. Speaker, I thank Ranking Member Scott for yielding. Mr. Speaker, I rise in opposition to the so-called Save Local Business Act. This administration and this Congress have already weakened workplace protections that keep Americans safe…
Mr. Speaker, I thank Ranking Member Scott for yielding.
Mr. Speaker, I rise in opposition to the so-called Save Local Business Act. This administration and this Congress have already weakened workplace protections that keep Americans safe from discrimination at their jobs, and make sure that they receive fair pay and provide additional opportunities to save for a secure retirement.
Joint employer provisions make sure that employers cannot escape liability for violating worker protection laws. This standard makes our laws on overtime pay, on safe workplaces, on minimum wage enforceable.
What this bill does not do is turn franchisors into employers unless they act like employers. I spent years as a lawyer representing franchisees, and I know this won't turn franchisors into employers.
Mr. Speaker, I include in the Record a letter from the Signatory Wall and Ceiling Contractors Alliance. They oppose this bill because it would put law-abiding small businesses at a competitive disadvantage with unscrupulous companies that don't respect worker's rights and don't pay workers the wages they have earned.
Signatory Wall and
Ceiling Contractors Alliance,
Saint Paul, MN, October 5, 2017.
Hon. Paul Ryan,
Speaker of the House,
House of Representatives, Washington, DC.
Hon. Nancy Pelosi,
Minority Leader,
House of Representatives, Washington, DC.
Dear Mr. Speaker and Leader Pelosi: I am writing on behalf
of the Signatory Wall and Ceiling Contractors Alliance
(SWACCA) to express our strong opposition to H.R. 3441, the
``Save Local Business Act.'' This legislation will not
benefit honest small businesses that create good jobs with
family-sustaining wages and benefits. It will actually place
such employers at a permanent competitive disadvantage to
unscrupulous companies that seek to thrive solely at the
expense of their workers and taxpayer-funded social safety-
net programs.
SWACCA is a national alliance of wall and ceiling
contractors committed to working in partnership with our
workers and our customers to provide the highest-quality,
most efficient construction services. Through the superior
training, skill, and efficiency of our workers SWACCA
contractors are able to provide both cost-effective
construction services and middle class jobs with health and
retirement benefits. Our organization prides itself on
representing companies that accept responsibility for paying
fair wages, abiding by health and safety standards, workers
compensation laws, and unemployment insurance requirements.
Unfortunately, however, we increasingly find ourselves
bidding against companies that seek to compete solely on the
basis of labor costs. They do so by relieving themselves of
the traditional obligations associated with being an
employer. The news is littered with examples of contractors
who have sought to reduce costs by willfully violating the
laws governing minimum wage, overtime, workers compensation
unemployment insurance, and workplace safety protections. The
key to this disturbing business model is a cadre of labor
brokers who claim to provide a company with an entire
workforce that follows them to job after job. It is a
workforce that the actual wall or ceiling contractor controls
as a practical matter, but for which it takes no legal
responsibility. In this model workers receive no benefits,
are rarely covered by workers compensation or unemployment
insurance, and are frequently not paid
in compliance with federal and state wage laws. The joint
employment doctrine is an important means for forcing these
unscrupulous contractors to compete on a level playing field
and to be held accountable for the unlawful treatment of the
workers they utilize.
As an association representing large, medium, and small
businesses, we oppose H.R. 3441 because it proposes a
radical, unprecedented re-definition of joint employment
under both the FLSA and the NLRA that goes far beyond
reversing the standard articulated by the NLRB in Browning-
Ferris or returning to any concept of joint employment that
has ever existed under the FLSA since the Act's passage. H.R.
3441's radical and unprecedented redefinition of joint
employment would proliferate the use of fly-by-night labor
brokers by ensuring that no contractor using a workforce
provided by a labor broker would ever be deemed a joint
employer. This is because the bill precludes a finding of
joint employment unless a company controls each ``of the
essential terms and conditions of employment (including
hiring employees, discharging employees, determining
individual employee rates of pay and benefits, day-to-day
supervision of employees, assigning individual work
schedules, positions and tasks, and administering employee
discipline)''. H.R. 3441 goes further by expressly
countenancing a company using labor brokers retaining control
of the essential aspects of the workers' employment in a
``limited and routine manner'' without facing any risk of
being a joint employer.
Simply put, H.R. 3441 would create a standard that would
surely accelerate a race to the bottom in the construction
industry and many other sectors of the economy. It would
further tilt the field of competition against honest, ethical
businesses. Any concerns about the prior administration's
recently-rescinded interpretative guidance on joint
employment under the FLSA or the NLRB's joint employment
doctrine enunciated in Browning-Ferris can be addressed in a
far more responsible manner. Make no mistake, H.R. 3441 does
not return the law to any prior precedents or standards. It
creates a radical, new standard. This standard will help
unethical employers get rich not by creating more value, but
instead by ensuring their ability to treat American workers
as a permanent pool of low-wage, subcontracted labor that has
neither benefits nor any meaningful recourse against them
under our nation's labor and employment laws.
On behalf of the membership of SWACCA, thank you in advance
for your attention to our concerns about this legislation.
Please do not hesitate to contact me if you have any
questions or require additional information.
Sincerely,
Timothy J. Wies,
President.
Mr. Speaker, this legislation would leave workers behind and would give a free pass to unscrupulous companies that violate labor laws. Please oppose this legislation.
Mr. Speaker, I have a motion to recommit at the desk.
I am in its current form.
Mr. Speaker, this is the final amendment to the bill. It will not kill the bill or send it back to committee. If adopted, the bill will immediately proceed to final passage, as amended.
Mr. Speaker, the bill we are debating today is another assault on hardworking Americans who are desperately trying to put food on the table for their families, scrape together enough money to pay for child care, and have a roof over their heads.
My colleagues on the other side of the aisle are saying that they need this bill to save local businesses. We all support local businesses in our community. But my colleagues suggest that unless they pass this law, franchisors will become joint employers. Well, if they act like franchisors and control brands and standards, and they don't do things like hire, fire, and supervise the franchisees' employees, they won't be. In other words, if they act like a franchisor and not an employer, they won't be considered a joint employer.
In fact, this bill could actually harm franchisees and take away their independence because it would allow franchisors to indirectly control the labor relations of its franchisees, but be insulated from liability for violations that might arise from that control.
Now, my amendment would require that if a franchisor directs a franchisee to take an unlawful action that would violate labor laws, then the franchisor shall be considered a joint employer for the purpose of the violation.
In other words, if a franchisor acts like an employer, then they should be held accountable for their actions as an employer. Workers must be able to get their hard-earned overtime pay and the wages they are owed. This is common sense.
This motion would protect small businesses, promote the independence of franchisees, and, importantly, cure the defect in the bill that insulates franchisors from liability for exercising control over their franchisees' labor or employment relations.
Mr. Speaker, this legislation currently is an attack on workers' rights.
Mr. Speaker, I urge my colleagues to adopt my amendment, and I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.