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Clarifying Joint Employer Rules
Recent Bills/Clarifying Joint Employer Rules

Clarifying Joint Employer Rules

IntroducedJuly 14, 2025
In House8 months ago
Intro
House
Senate
Pres
Rule H. Res. 988 passed House.
Labor and EmploymentLabor standardsLabor-management relationsWages and earnings
More:Bills in the HouseEconomyHouse Bills
Why This Matters

This bill clarifies the rules about when two or more employers can be seen as joint employers, making it harder for businesses to be labeled as such unless they have direct control over each other's workers. This matters because it can affect how businesses operate and their responsibilities toward employees.

If you own a local business, this bill could help protect you from being unfairly classified as a joint employer.
Who this affects
Local business owners · Employees
What changes is this bill making?
  1. 1This bill defines how two or more employers can be considered joint employers.
  2. 2It requires that employers have significant control over each other's employees to be joint employers.
  3. 3The bill updates rules under the National Labor Relations Act and the Fair Labor Standards Act.
  4. 4It aims to protect local businesses from being unfairly labeled as joint employers.
  5. 5The changes could impact how businesses manage their employees and contracts.
Read the detailed summary

Save Local Business Act This bill provides that a person may be considered a joint employer of the employees of another employer under federal labor law only if such person directly, actually, and immediately exercises significant control over the essential terms and conditions of employment. Such control may by demonstrated by hiring and discharging employees; determining individual employee rates of pay and benefits; day-to-day supervision of employees; assigning individual work schedules, positions, or tasks; or administering employee discipline.

Read full document
Bill Progress2 of 4
Bills must pass the House, Senate, and be signed by the President to become law.
Intro
House
Senate
Pres
IntroducedJul 14, 2025
Sponsors
See all 3 sponsors
HouseCurrent

Rule H. Res. 988 passed House.

Senate
President

The President

Donald Trump
President
Awaiting Vote
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