H.R. 3441 amends the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FLSA) to clarify that two or more employers may be considered “joint employers” only if they have “actual, direct, and immediate” control over employees’ essential terms and conditions of employment.
H.R. 3441 rolls back the decisions by the NLRB in Browning-Ferris and the U.S. Court of Appeals for the Fourth Circuit with respect to the FLSA in Salinas v. Commercial Interiors, Inc., as well as similar decisions by regulators and other courts.
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Nov 7, 2017.
(This measure has not been amended since it was reported to the House on November 1, 2017. The summary of that version is repeated here.)
Save Local Business Act
(Sec. 2) This bill amends the National Labor Relations Act and the Fair Labor Standards Act of 1938 to provide that a person may be considered a joint employer in relation to an employee only if such person directly, actually, and immediately, and not in a limited and routine manner, exercises significant control over the essential terms and conditions of employment such as hiring employees, discharging employees, determining individual employee rates of pay and benefits, day-to-day supervision of employees, assigning individual work schedules, positions, and tasks, or administering employee discipline.