National Restaurant Association Statement on Senate Passage of Joint Employer CRA

Washington, D.C. – Sean Kennedy, executive vice president for Public Affairs at the National Restaurant Association issued the following statement on the Senate vote on H.J. Res. 98, the Congressional Review Act resolution regarding the National Labor Relations Board's (NLRB) 2023 final rule, “Standard for Determining Joint Employer Status”:

“At a time when it’s next to impossible to get something passed in both Houses of Congress, yesterday the Senate came together to express their support of business owners by voting to overturn the National Labor Relation Board’s overreaching Joint Employer Rule. This vote echoes the support of House members, and we hope President Biden will give serious consideration to signing the resolution.

“The NLRB’s 2023 Joint Employer Rule threatens the foundation upon which nearly a third of the restaurant industry is built. Restaurant ownership – especially for the franchisees that will be most impacted by the rule – grew significantly under the previous rule, opening doors for people who may not otherwise been able to become an entrepreneur.

“Restaurants are the cornerstone of the American economy and a vital source of employment, and the new Joint Employer standard would have profound and far-reaching repercussions across the industry. This rule risks imposing onerous regulatory burdens and increased legal liabilities on restaurants large and small that could limit entrepreneurship and dampen economic growth in communities across the country.”

In March, the United States District Court in the Eastern District of Texas handed down a summary judgement decision, vacating the National Labor Relations Board’s 2023 Joint Employer Rule. The decision means the Joint Employer Standards reverts to the NLRB’s 2020 Final Rule, which codified a long-established “direct and immediate” joint employer standard and provided clear and stable guidance for foodservice employers and employees.

A separate challenge to the 2023 Joint Employer Rule remains in the D.C. Circuit Court.

Get more information about how the 2023 Joint Employer Rule would impact restaurants here.