Business groups are pushing Democratic lawmakers to rein in the National Labor Relations Board, upset with a series of recent decisions by the federal labor law enforcement agency that have favored labor unions.
They claim to have found a receptive audience.
Michael Layman, executive director of the Coalition to Save Local Businesses, conceded that “labor issues are challenging” with Congress, but said the effort was benefiting from using small local business owners to press the case.
“We think we are going to have a chance to leverage the equity we have built with members of Congress this fall. Every lawmaker supports small business — they certainly provide a lot of lip service to small business support — so we will see which members are truly supporters of small business,” Layman said in a conference call with reporters.
Business owners on the call said that had met recently with Sen. Michael Bennet, D-Colo., and Rep. Scot Peters, D-Calif. Last week, the coalition met with Rep. Steny Hoyer, D-Md., the second-ranking House Democrat.
The coalition’s partners include trade associations such as the National Retail Federation, the National Restaurant Federation and the National Association of Manufacturers, among others.
The group is upset over recent rulings by the board, particularly one released last week expanding the definition of “joint employer” — when a business is legally liable for labor violations by another. The ruling last week said contractors can be liable for the actions of their subcontractors.
Another labor board ruling on the issue is expected later this year in a case involving McDonald’s Corp. on whether franchiser companies are legal responsible for violations by franchises. Many expect the board rule against McDonald’s.
That worries small business owners such as John Sims, who owns a Rainbow Station early education center franchise in Richmond, Va. “I fear that my days of being an autonomous business owner are numbered,” he told reporters.
Mara Fortin, who owns a Nothing Bundt Cakes franchise in San Diego, said she expects the board’s rulings will cost her both control and money because the franchiser, itself a small business, will be saddled with new expenses to oversee its franchisees.
“I have had conversations with my [franchise] co-founder … and we’re going to have to go back and look at the contract,” Fortin said. “For my franchiser to step and regulate what happens … with the employees is going to cost us money. We’re going to have to pay more in terms of fees and royalties.”
