The left hates small business. Demonstrates independence from government reliance.
https://www.washingtonexaminer.com/...ministration-steps-up-war-on-small-businesses
The Biden administration is quietly stepping up its war on small businesses through a series of new labor rules that make entrepreneurship more difficult and, in some cases, illegal.
Last week, the National Labor Relations Board announced a new joint employer rule that reduces franchising and contracting opportunities. This is in addition to a rule the Department of Labor is about to finalize that would ban many forms of freelancing and independent contracting.
As its name implies, the NLRB's new standard makes franchisees and contractors joint employers with their corporate parents. It expands the definition of employer from the commonsense one of a business that has "direct and immediate" control over employees to one that exercises mere "indirect" or "reserved" control.
As a result, corporations will curtail franchising and contracting opportunities due to liability concerns. If, for example, a restaurant or hotel franchisee improperly calculates an overtime payment, or if a janitorial contractor on a job site misses a safety regulation, greedy plaintiff lawyers can sue the corporation, which is now jointly responsible.
Existing franchisees and contractors would become mere middle managers who report to corporations, rather than entrepreneurs and owners of their own business. That’s some reward for years of hard work building a business.
Almost one-third of franchise owners say they would not own their business without franchising.
This new dynamic will disproportionately hurt minorities, who have long used the franchise system to punch their ticket to the middle class. Moreover, minority-owned franchisees tend to operate in minority-owned neighborhoods and hire minority workers, meaning this standard also would reduce minority job opportunities.
https://www.washingtonexaminer.com/...ministration-steps-up-war-on-small-businesses
The Biden administration is quietly stepping up its war on small businesses through a series of new labor rules that make entrepreneurship more difficult and, in some cases, illegal.
Last week, the National Labor Relations Board announced a new joint employer rule that reduces franchising and contracting opportunities. This is in addition to a rule the Department of Labor is about to finalize that would ban many forms of freelancing and independent contracting.
As its name implies, the NLRB's new standard makes franchisees and contractors joint employers with their corporate parents. It expands the definition of employer from the commonsense one of a business that has "direct and immediate" control over employees to one that exercises mere "indirect" or "reserved" control.
As a result, corporations will curtail franchising and contracting opportunities due to liability concerns. If, for example, a restaurant or hotel franchisee improperly calculates an overtime payment, or if a janitorial contractor on a job site misses a safety regulation, greedy plaintiff lawyers can sue the corporation, which is now jointly responsible.
Existing franchisees and contractors would become mere middle managers who report to corporations, rather than entrepreneurs and owners of their own business. That’s some reward for years of hard work building a business.
Almost one-third of franchise owners say they would not own their business without franchising.
This new dynamic will disproportionately hurt minorities, who have long used the franchise system to punch their ticket to the middle class. Moreover, minority-owned franchisees tend to operate in minority-owned neighborhoods and hire minority workers, meaning this standard also would reduce minority job opportunities.
