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The National Labor Relations Board’s new rule would expand the definition of joint employer under federal law. The rule says two employers using the same employees would be “joint employers,” and share responsibility for each others actions.
But Maine’s small businesses, many of them franchises, say that can expose them to decisions that they have no control over, like union issues.
Mike Layman, spokesman for the International Franchise Association, says Maine’s 2,200 franchises will be at risk under the new rule.
“This policy is not going to hurt Google and Amazon. It’s going to hurt small businesses and create an environment where on Main Street small business opportunities are going to dry up and be replaced by big businesses that don’t have to navigate this policy in nearly the same way,” Layman said.
The AFL-CIO supports the new Joint Employer Rule, saying corporations often control franchises which gives employees little say in their working conditions.
Adam Goode is Legislative and Political Director for the AFL-CIO.
“What we’ve seen is that corporations have scared small businesses, especially franchisees, into thinking the joint employer rule would destroy small business and the franchise model. We believe that’s false. We believe that it will protect and encourage collective bargaining as a means of solving labor disputes,” Goode said.
The rule is due to go into effect February 26. The U.S. House of Representatives will vote on a resolution next week that disapproves of the rule.
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