Despite the current administration’s aggressive pro-growth overhaul of federal regulations, a major drag on economic growth remains in the form of a little-known Obama-era labor rule.
In 2015, the National Labor Relations Board broadened the “joint employer standard” so that more and bigger companies could be held responsible for employment conditions in separate businesses. While seemingly innocuous, this regulation demonstrably slows job growth, impacts nearly half the labor force, and, contrary to the NLRB’s intent, primarily benefits high-wage workers.
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