By tying joint employer status to direct and immediate control over fundamental aspects of the employment relationship—hiring, firing, discipline, supervision and direction—the [current] standard ensures that the joint employer is actually involved in matters material to the scope of the Act, and is not merely engaged in a market relationship that may have an indirect impact upon employees… The consequence to a business of [changing the standard], including the time and cost of bargaining with possibly hundreds or thousands of business partners throughout the country, would be enormous… Rather than accept such liabilities with no control over the workplace, or engage in endless bargaining across the country, many companies undoubtedly will opt to cancel subcontracts or franchise arrangements, or subcontract overseas, thus displacing small businesses and the millions of jobs that small businesses create. The impact upon the economy would be enormous.
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Authors: Daniel V. Yager
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Daniel V. Yager
Senior Advisor, Workplace Policy, HR Policy Association
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