November 8, 2017

Statement from Mark Allen, President & CEO of the International Foodservice Distributors Association (IFDA) regarding the House passage of the Save Local Business Act.

IFDA commends the U.S. House of Representatives on the passage of H.R. 3441 – the Save Local Business Act. This legislation provides much needed clarity, protects business relationships, and promotes economic growth. The NLRB-created joint employer definition is far too broad and poses an existential threat to American economic growth.

In a 2015 decision, the NLRB changed the “direct control” standard to an ambiguous definition that holds a firm as a joint employer if it exercises “direct or indirect control” over another firm’s workforce. Because this definition is so vague, the new standard could easily be applied to any business arrangement. Without reform to joint employer liability, businesses face confusing and uncertain labor costs. This puts jobs and businesses at risk, leading to decreased opportunities for entrepreneurs and less job creation.

IFDA is extremely grateful for the leadership shown by Chairwoman Virginia Foxx and Representatives Bradley Byrne, Tim Walberg, Henry Cuellar, and Lou Correa, in introducing the bill and seeing it through. We urge the Senate to follow the House’s lead with swift passage.