It used to be that small business was the engine that drove the economy.
“Small businesses create seven of every ten new jobs,” according to the House Committee on Small Business, “and they employ just over half of the country’s private sector workforce.”
Nevertheless, when government agencies like the National Labor Relations Board issues a ruling affecting one business, it affects almost all private-sector businesses—large and, very importantly, small businesses.
Heather Pitsiladas is a small-business owner in Bismark, North Dakota, who has a problem with the recent NLRB ruling that makes her responsible for another company’s employees.
The ruling means that any business, regardless of size, that contracts with other businesses for specialized services can now be considered a “joint employer” with each of them. The result is that I am now liable for the employees of businesses I contract with, and equally troubling, that those employees now effectively work for me even though I did not hire them and set their salaries, schedules or benefits.
Democrat or Republican, it is not Washington’s role to make business decisions for me. Policymakers should focus on ways to help create an environment that allows small businesses, which create two-thirds of all net-new jobs, to thrive — spreading opportunities for people across this country and adding to our economy. The NLRB’s ruling in Browning-Ferris does the opposite. It threatens small businesses and shows inadequate understanding of the function of the American workplace in a modern economy.
Read the rest of Ms. Pitsiladas concerns here.
Related: NLRB Imposes New “Indirect Control” Joint Employer Standard in Browning-Ferris