MSCI Signs Letter Opposing Biden Joint Employer Proposal

As Connecting the Dots readers are aware, under the Obama administration, the National Labor Relations Board dramatically changed the standard on what constituted a joint employer for purposes of labor union organization, reversing the long-held standard that an employer had to have direct control over the terms and conditions of employees to be considered a joint employer.

The rule was rescinded under President Donald Trump, but the Biden Administration is investigating how to reinstate the original Obama-era rule.

In the very near future, Reps. James Comer (R-Ky.) and Sen. Roger Marshall (R-Kansas) are planning to reintroduce the Save Local Business Act, which passed the House in 2017 with bipartisan support. The legislation would amend the National Labor Relations Act and the Fair Labor Standards Act to make clear that an employer may be considered a joint employer in relation to an employee only if such employer directly, actually, and immediately exercises significant control over the essential terms and conditions of employment.

MSCI recently joined with dozens of other businesses and trade organizations to support the legislation.

The letter, available here, said, “This legislation comes at a critical time in the economic recovery when so many small businesses are emerging from the COVID-19 pandemic and are seeking legal clarity to help them grow their businesses, create jobs, serve their communities and meet local, state and federal obligations to their employees, customers and the general public.”