WASHINGTON, D.C. – The National Retail Federation issued the following statement from Senior Vice President of Government Relations David French after the U.S. House of Representatives voted to pass a resolution repealing the National Labor Relations Board’s final joint employer rule. As written, the new rules would increase liabilities for businesses of all sizes by expanding the definition of a joint employer under federal law.
“Partnerships between retailers and specialty service providers are vital to the industry’s success. The ability of retailers to enter into these legal and common contractual relationships is now hindered by these new rules.
“The House has rightly acted to repeal the administration’s new flawed joint employer rules. The rules are so broad as to establish a joint employment relationship if a firm shares even indirect, unexercised or potential control of another company’s employees.
“Retailers need a definitive line regarding joint employment, and we commend the House’s effort to reinstate the longstanding, workable rules that foster job growth and free enterprise in the retail community.”
NRF submitted a comment letter in December 2022 formally opposing the proposed rules and urging the board to maintain the existing, workable standard. In November 2023, NRF joined a coalition of business organizations to file suit against the rules. NRF sent a letter of support to Congress in January 2024 to pass H.J. Res. 98, which challenges the National Labor Relations Board’s (NLRB) final joint employer rule.
As the leading authority and voice for retail, NRF will continue to advocate for workplace rules that promote workplace flexibility and economic growth.