Westbank Louisiana News

U.S. Senator Bill Cassidy, M.D., the ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, expressed his disappointment following President Biden’s decision to veto the bipartisan Congressional Review Act (CRA) resolution aimed at repealing the National Labor Relations Board’s joint employer rule.

In a statement, Dr. Cassidy highlighted the impact of Biden's veto on the American franchise model, stating, “Biden’s joint employer rule undermines the American franchise model that has empowered those underrepresented in the business community, such as women and people of color, to live the American dream, becoming successful small business owners as they help create jobs. That’s why Congress voted on a bipartisan basis to reject this policy.”

The Biden rule shifts liability to franchisers for labor decisions made by individual franchise owners, jeopardizing the viability of the franchise business model that sustains over nine million American jobs. This change introduces uncertainty for small and local businesses regarding legal responsibilities, leading to increased operational costs and decreased job creation opportunities.

The alteration in joint employer standards dates back to the Obama administration in 2015, deviating from the "direct and immediate" management requirement to include "indirect" and "reserved" management. However, the Trump administration reinstated the "direct and immediate" standard in 2020, offering legal stability to businesses. The CRA to reverse Biden’s joint employer policy has garnered support from more than 170 organizations.

The veto by President Biden has sparked criticism from Dr. Cassidy, who accused the administration of disregarding the will of Congress and endangering the livelihoods of millions of American workers relying on franchise businesses for employment.