Business leaders n Washington are bracing for a labor ruling they said would redefine what constitutes an “employer” in the United States, exposing thousands of companies to new liabilities and upending industries.
The National Labor Relations Board (NLRB) is expected to rule by month’s end that Browning-Ferris Industries, a Houston-based waste-disposal company, is a joint employer of workers provided to the firm by a staffing agency. As a result, the company would have to collectively bargain with those employees and would be held liable for any labor violations.
The decision could affect companies from a range of industries including restaurants, retailers, manufacturers, construction companies, financial services providers, cleaning services, and security companies.
Supporters of the decision say it is necessary to protect temporary workers and independent contractors. Business leaders fear it will hurt the private sector.
“It has the potential to change the entire way businesses operate in the country, “ said Rob Green, executive director of the National Council of Chain Restaurants.
“There are so many business relationships in the economy that rely on companies providing services to other companies,” he added. “So you can imagine that any business sector could by impacted by the decision.”
At issue is whether Browning-Ferris is responsible for the treatment of its contractor’s employees. The company hired Leadpoint Business Services to staff a recycling facility in California.
A regional NLRB director ruled in favor of Brown-Ferris, which opposes the joint employer designation. But a union is appealing the case to the national board.
The vote Democratic-controlled NLRB is expected to overturn the decision and side with the works. The vote is expected to come before Republican board member Harry Johnson’s term runs out at the end of the month.
While the Democrats on the five-seat board could push the decision through on a 3-1 vote after that, doing so could lead to intense criticism of the agency over issuing a sweeping ruling without all five board members.
The National Labor Relations Board (NLRB) is expected to rule by month’s end that Browning-Ferris Industries, a Houston-based waste-disposal company, is a joint employer of workers provided to the firm by a staffing agency. As a result, the company would have to collectively bargain with those employees and would be held liable for any labor violations.
The decision could affect companies from a range of industries including restaurants, retailers, manufacturers, construction companies, financial services providers, cleaning services, and security companies.
Supporters of the decision say it is necessary to protect temporary workers and independent contractors. Business leaders fear it will hurt the private sector.
“It has the potential to change the entire way businesses operate in the country, “ said Rob Green, executive director of the National Council of Chain Restaurants.
“There are so many business relationships in the economy that rely on companies providing services to other companies,” he added. “So you can imagine that any business sector could by impacted by the decision.”
At issue is whether Browning-Ferris is responsible for the treatment of its contractor’s employees. The company hired Leadpoint Business Services to staff a recycling facility in California.
A regional NLRB director ruled in favor of Brown-Ferris, which opposes the joint employer designation. But a union is appealing the case to the national board.
The vote Democratic-controlled NLRB is expected to overturn the decision and side with the works. The vote is expected to come before Republican board member Harry Johnson’s term runs out at the end of the month.
While the Democrats on the five-seat board could push the decision through on a 3-1 vote after that, doing so could lead to intense criticism of the agency over issuing a sweeping ruling without all five board members.