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The proposal to repeal the National Labor Relations Board rule
passed Congress narrowly and it is unlikely Republicans can
muster the two-thirds majority to override the veto by Biden, a
Democrat. A federal judge in March blocked the rule from taking
effect, but that decision will likely be appealed.
In a memo to lawmakers, Biden said the board's rule would ensure
that employers cannot evade their legal obligations by
controlling workers indirectly through contractors.
"Republicans are siding with union-busting corporations over the
needs of workers and their unions," Biden said.
An NLRB spokeswoman declined to comment. Some Republican backers
of the resolution did not immediately respond to requests for
comment.
The rule would treat companies as "joint employers" of contract
and franchise workers when they have control over key working
conditions such as pay, scheduling, discipline and supervision,
even if that control is indirect or not exercised.
Critics of the rule, including many Republicans and most major
business groups, have said it would be improper to force
companies to the bargaining table when they have little control
over working conditions.
Groups representing franchise businesses say it could upend the
franchise model by requiring companies such as McDonald's to
bargain with the employees of franchisees.
Matthew Haller, president and CEO of the International Franchise
Association, said the rule would cause particular harm to
underrepresented groups including minorities, women and veterans
who have often turned to franchising as a path to business
ownership.
“President Biden claims to be a champion for small businesses,
but today he turned his back on franchising," Haller said in a
statement.
The rule was set to take effect in February, but was delayed and
ultimately blocked by U.S. District Judge J. Campbell Barker in
Tyler, Texas, in a lawsuit by the U.S. Chamber of Commerce and
other business groups.
Barker, an appointee of Republican former President Donald
Trump, said the rule was invalid because it would treat some
companies as employers even when they lacked any meaningful
control over the working conditions of contract and franchise
workers.
The board has until later this month to appeal Barker's ruling.
(Reporting by Daniel Wiessner in Albany, New York; Editing by
Emelia Sithole-Matarise)
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