Westbank Louisiana News

U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, expressed his satisfaction following the Senate vote to overturn the National Labor Relations Board’s joint employer rule. Cassidy, along with U.S. Senator Joe Manchin (D-WV) and Republican Leader Mitch McConnell (R-KY), introduced the Congressional Review Act (CRA) resolution aiming to preserve the franchise business model. The bipartisan vote of 50 to 48 in favor of the resolution sends it to the President's desk for approval.

In a statement, Senator Cassidy emphasized the importance of protecting the franchise system, stating, “Saddling franchisers with liability for thousands of franchise owners that actually operate the day-to-day activities of small business would be a sure way to destroy the system of franchising." He added, "This model has empowered those underrepresented in the business community, such as women and people of color, to become successful small business owners and create jobs for others."

Senator Manchin of West Virginia also supported the CRA, highlighting the significance of small businesses in local communities. He stated, "The NLRB’s joint employer rule would shut the door for thousands of citizens who want to start a business and fulfill the American Dream when we should be focused on bolstering our economic growth and empowering Main Street America."

The joint employer rule introduced by the Biden administration was criticized for making franchisers liable for the labor decisions of individual franchise owners, posing a threat to the franchise business model. The rule's implications on legal liabilities and operational costs for small businesses were emphasized, with concerns raised about the potential hindrance to job creation.

The legal history of joint employer standards was outlined, noting the shift in 2015 under the Obama administration and the subsequent return to the "direct and immediate" standard in 2020 during the Trump administration. The bipartisan support for the CRA to overturn the Biden rule was underscored, with U.S. Representative John James (R-MI) introducing the companion resolution in the House of Representatives.

Bill DiPaola, a New Orleans restaurant franchisee and first-generation American, expressed gratitude to Sen. Cassidy for defending the franchise model. DiPaola highlighted the impact of the joint employer rule on franchise businesses, praising Cassidy for protecting his independence as a business owner.

The resolution's passage in both chambers reflects a bipartisan rejection of the Biden administration's policy, aiming to safeguard the American franchise model and support local businesses.