Associated Builders and Contractors (ABC) has been a vocal opponent of radical changes to the joint employer standard and has opposed changing the standard. In response to the National Labor Relations Board’s (NLRB) joint employer ruling in the Browning-Ferris Industries of California case, ABC has criticized the NLRB for creating unnecessary uncertainty throughout the business community.
The NLRB ruling on joint employer status hinges on whether the employer has a "right to control". In an interview with Nightly Business Report, National Association of Homebuilders CEO Jerry Howard also strongly opposes the new rule. Howard says the ruling “really shows no understanding of 80% of the marketplace. It’s impossible to comply with.”
“Today’s ruling overturns decades of standards that have worked both for business owners and employees,” said ABC Vice President of Government Affairs Geoff Burr. “The Board’s decision uproots 30 years of labor standards and imposes unnecessary barriers to and burdens on the contractor and subcontractor relationships throughout our industry.
“This ruling threatens both responsible contractors who have established sound workplace protocols and subcontractors by deeming them joint employers of the subcontractors’ employees,” said Burr. “Contractors may find themselves vulnerable to increased liability making them less likely to hire subcontractors, most of whom are small businesses, to work on projects.”
