Property Management Business Solutions, LLC (PMBS), franchisor of Real Property Management, recently hosted a roundtable meeting with U.S. Representative Chris Stewart (UT) and U.S. Chamber of Commerce representatives, the International Franchise Association (IFA), and other franchisors regarding joint employer policy affecting locally owned businesses.
The meeting was initiated by the Coalition to Save Local Businesses, spurred by the National Labor Relations Board’s (NLRB) recent actions to change the joint employer standard used to determine when separate employers share responsibility and liability for the same employees. After decades of protecting businesses from liability that shouldn’t be theirs, the NLRB now allows regulators to potentially find joint employer liability in almost any business contractual relationship.
“As a national company and leader in the property management industry, we welcomed the opportunity to bring together government leaders and business owners to discuss this important issue,” said John Gohde, PMBS Chief Operating Officer.
“Joint employer legitimately threatens the franchise business model. If franchisors are liable for franchisee actions, they will stop franchising. Then, rather than locally owned businesses on Main Street, you’ll have big corporations. Ultimately, the joint employer threat will destroy small businesses over time. We are encouraged by Congressman Stewart’s knowledge and experience working with Congress in this area, and his commitment to further the discussion in Washington.”
Through the Coalition to Save Local Businesses, the IFA seeks a permanent solution on joint employer policy to protect franchise businesses from undeserved liability for another firm’s workers.