The House Education and Workforce Committee voted along party lines to advance H.R. 4366, the “Save Local Business Act.” This legislation would amend both the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FLSA) to substantially curtail the instances in which a company may be deemed a joint employer in relation to the employees of another entity, like a subcontractor, such that it would almost never be liable for misclassification of the subcontractor’s workers as independent contractors or other serious violations of federal employment laws. SWACCA has consistently opposed and helped to defeat this legislation over several Congresses and sent a letter earlier this week renewing its opposition to the bill.
The Committee also voted along party lines to advance: (1) H.R. 1319, the “Modern Worker Empowerment Act” to revise the test for determining when a worker is an employer or independent contractor; and (2) H.R. 1320, the “Modern Worker Security Act” which excludes from consideration in employment tests under any federal law whether a firm has provided compensation through a portable benefit model. The bills now head to the full House for consideration.