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National Restaurant Association - NLRB: Browning-Ferris a joint employer

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NLRB: Browning-Ferris a joint employer

The National Labor Relations Board today issued a long-awaited decision in the Browning-Ferris Industries case, effectively upending decades of precedent to hold that Browning-Ferris is considered a “joint employer” with a temporary staffing agency that supplied employees to BFI.

The board determined by a 3-2 party-line vote that Browning Ferris had indirect and direct control over employees supplied by the staffing agency. That means BFI can be held jointly liable for unfair labor practices involving those employees. The decision has broad implications for multiple industries, including restaurants.

“While we continue to review the NLRB’s ruling, it appears that once again the board is stacking the deck against small businesses,” the National Restaurant Association’s Angelo Amador said. “The board is overturning years of established law that has worked to help grow business and feed our economy."

Amador noted that the NLRB was using its new rationale to dismantle the franchisor-franchisee model, which stifles entrepreneurship and obstrucst small businesses’ ability to continue to create jobs in an increasingly challenging economic and regulatory environment.

“The decision to upend the joint-employer standard will have dire consequences on franchisees' decisions to grow and expand their businesses, jeopardizing economic growth in communities across the country.”

Read the NRA’s full statement.

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