NHLA Statement on Anti-Joint Employer Bill

LATINO LEADERS OPPOSE HOUSE-PASSED “SAVE LOCAL BUSINESS ACT” AND CALL ON SENATE TO REJECT BILL

 

WASHINGTON, D.C. – The National Hispanic Leadership Agenda, a coalition of 45 of the nation’s preeminent Latino advocacy organizations, called on U.S. Senators to oppose the so-called “Save Local Business Act” (bill number HR 3441), which the U.S. House of Representatives passed earlier this month and has been sent to the Senate for consideration. The legislation would undermine the effective enforcement of labor protections in joint-employer arrangements where a large company contracts with a smaller vendor, potentially impacting millions of low-wage Latino workers.

 

As explained in NHLA’s letter to Senators, HR 3441 would change the definitions of employment relationships under the Fair Labor Standards Act and the National Labor Relations Act, making it virtually impossible for a court or federal enforcement agency to hold that two businesses are both the employer – or “joint employers” -- of a group of workers even when the two businesses share responsibilities for their hiring and employment.

 

“HR 3441 would undermine basic labor protections for millions of workers.  It also would harm the competitiveness of law-abiding businesses that do not take advantage of the evasions of labor protections that this bill would permit.  The bill would be especially harmful to farmworkers and other low-wage workers in industries where labor subcontracting is prevalent,” said Bruce Goldstein, Co-Chair of the NHLA Economic Empowerment and Labor Committee and President of Farmworker Justice.

 

“HR 3441 creates a massive legal loophole for companies to evade their obligations to abide by laws that protect workers’ rights to, among other things, collective bargaining, a safe workplace, and fair compensation. Workers struggling to make ends meet and provide for their families should not have to face worse wages and working conditions in order to pad the profits of large corporations. Senators should reject this anti-worker legislation,” said Hector Sanchez Barba, Chair of NHLA and Executive Director of the Labor Council for Latin American Advancement.