ABC Fears NLRB Joint Employer Final Rule Will Harm Small Businesses

WASHINGTON, Oct. 26—Associated Builders and Contractors today released the following statement on the National Labor Relations Board’s joint employer final rule. The final rule rescinds and replaces the ABC-supported 2020 NLRB joint employer final rule, which provided clear criteria for companies to apply when determining their joint employer status.

“Unfortunately, the Biden NLRB decided to dramatically expand joint-employer liability under the National Labor Relations Act, which will disrupt existing contractor and subcontractor relationships throughout the construction industry,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “As a result of the confusion and policy whiplash caused by this overbroad standard, contractors may be vulnerable to increased liability and risk, making them less likely to hire subcontractors, most of which are small businesses. This will ultimately cause needless delays and cost inflation on taxpayer-supported infrastructure projects. ABC will explore all options to push back on this harmful final rule, including possible litigation.”

According to the U.S. Census Bureau, the construction industry has one of the highest concentrations of small businesses and construction companies that employ fewer than 100 construction professionals comprise 99% of construction firms in the United States.

On Dec. 7, 2022, ABC submitted comments to the NLRB urging the Board to withdraw the new proposed rule.