Save Local Business Act
House Committee Advances Save Local Business Act to Narrow Joint Employer Liability Rules
Legislative Progress
Key Points
- Congress would limit when two separate businesses can be treated as one “joint employer” for labor law and wage-and-hour law.
- A company would count as a joint employer only if it directly and immediately has major control over key job terms like hiring, firing, pay, scheduling, and daily supervision.
- This could affect franchises, contractors, and staffing setups by reducing when a larger company can be held responsible for another company’s workers.
- Workers may have a harder time bringing complaints or bargaining that involve a parent company or brand unless that company clearly controls day-to-day work.
- Small businesses could face fewer situations where they and a partner company are both pulled into the same labor dispute or wage lawsuit.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Rule H. Res. 988 passed House.
The House of Representatives voted to approve this bill. It now goes to the Senate.
Rules Committee Resolution H. Res. 988 Reported to House. Rule provides for consideration of H.R. 2988, H.R. 2262, H.R. 2270, H.R. 2312 and H.R. 4366. The resolution provides for consideration of H.R. 2988 under a structured rule, and H.R. 2262, H.R. 2270, H.R. 2312, and H.R. 4366 under a closed rule. The rule provides for one hour of general debate and one motion to recommit on each bill.
Placed on the Union Calendar, Calendar No. 368.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-422.
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 20 - 16.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articlesJoint employer legislation exposes growing GOP labor rift
House leadership was forced to shelve the Save Local Business Act after a group of self-styled 'pro-worker' Republicans signaled they would join Democrats in opposition. The rift highlights a growing divide within the GOP between traditional business interests and a new populist wing.
Punching In: House GOP Pushes—Again—on Defining a Joint Employer
The Save Local Business Act would heighten the standard for joint employment under the NLRA and FLSA so that a business is only considered a joint employer if it oversees hiring, firing, pay, and daily supervision. Proponents say the change protects small firms from regulatory whiplash.
Source Information
Document Type
Congressional Bill
Official Title
Save Local Business Act
Data Sources
Sponsor
Cosponsors
(2)Analysis generated by AI. Always verify with official sources.