Providing for Congressional Disapproval Under Chapter 8 of Title United States Code, of the Rule Submitted By the National Labor Relations Board Relating to ``Standard for Determining Joint Employer

Floor Speech

Date: April 10, 2024
Location: Washington, DC

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Mr. MARSHALL. Madam President, I want to thank also the Senator from the great State of Louisiana for his leadership on this very important issue.

The joint employer rule from the NLRB will crush the franchise model as we know it. It is going to crash the model of business that brought financial freedom to millions of Americans.

What I love about the franchise models everywhere I go, visiting with these owners--it has been so helpful for minorities, for veterans, for women. These franchises provide a model, the framework on how to be successful, but this new rule from the NLRB would destroy the model as we know it.

Now, I am not sure that Kansas had the first franchise, but in my mind, they did. I remember when Pizza Hut started. It was started by some students out of Wichita State University delivering pizzas to their fellow students. Not long after that came Rent-A-Center, Freddy's Frozen Custard, Goodcents subs, and many, many more. And that story has been repeated all across the country. These businesses started off small but through franchising were able to grow into national successes. Today, there are 7,500 franchises employing 75,000 employees across the State.

Now, again, everywhere I go across the State of Kansas, people want to talk about inflation, but what is becoming more prominent, especially to a business owner, is regulations, just this overburden of regulations that is keeping us all down and driving up the cost of doing business. More regulations means more money, more cost to that owner.

The question I get from folks is, Why does the White House want to fix something that is not broken? Listen, the system is working just fine right now. So why are we trying to fix it?

I remember President Reagan talking about the 10 words every American hates to hear: ``I'm from the government, and I'm here to help you.'' We need less regulations, not more regulations.

This definition is overly broad, and this rule threatens the success stories for all those happy endings, for all those American dreams that have become true. Instead of being independent business owners, franchisees will be reduced to middle managers--killing jobs, killing income as well. This rule attempts to trigger joint employer status if two employers share the essential terms and conditions of employment but then talks about indirect control as one of these terms and conditions. So instead of making overly broad and burdensome rules, we should pass bills like our own Save Local Business Act, which provides clear and consistent standards for treating joint employment status.

I ask my colleagues to join us in supporting this CRA. This rule from the Federal Government is a solution in search of a problem.

The joint resolution was ordered to a third reading and was read the third time. Vote on H. J. Res. 98

PRESIDING OFFICER. The joint resolution having been read the third time, the question is, Shall the joint resolution pass?
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