Biden Supports Labor Leaders Over Franchise Operators

President Biden’s recent veto of a bipartisan Congressional Review Act resolution has sparked outrage among small business owners across the country. The resolution aimed to overturn the expansion of the joint employer rule, a move that would have provided relief to millions of small businesses facing regulatory challenges and uncertainties.

The expanded rule, announced by the National Labor Relations Board last October, threatens to disrupt the relationship between franchisors and franchisees, putting the future of the franchise model in jeopardy. Under the new rule, companies with vague authority to control workers could be considered joint employers, leading to increased oversight and legal risks for franchisors.

The consequences of this rule could be dire for entrepreneurs and employees alike. Franchisors may choose to withdraw resources or refrain from expanding through franchising, limiting business opportunities for prospective entrepreneurs. Employees could face uncertainty and competing bosses, reminiscent of the chaos depicted in the movie “Office Space.”

Furthermore, the expansion of the joint employer rule could exacerbate the racial wealth gap, hindering the progress towards addressing economic disparities. With 74% of franchisors expressing concern over the new standard, the threat is real and could have devastating consequences for the small business community.

Despite a recent court ruling striking down the expanded rule, the NLRB’s appeal means that it could still be implemented. Small business owners are looking to President Biden for support, but his veto has left many feeling abandoned in favor of appeasing labor bosses.

As the small business community grapples with the implications of the expanded joint employer rule, the future remains uncertain. President Biden’s actions have raised questions about his commitment to supporting small businesses, leaving many wondering where his priorities truly lie.