The GigReporter

Bloomberg Law reports[1] that business lobbyists, especially for franchisors, are pushing the new Republican majorities in Congress to enact legislation clarifying the scope of joint employment. Last-mile brokers, even those not in franchise relationships, should support these efforts.

The doctrine of joint employment allows two or more businesses to be considered the employers of a single employee. On the federal level there has been much back-and-forth among the varying administrations over how much control should be necessary for a joint employer finding, with the Democrats favoring looser regulations where even hypothetical control that is not actually exercised can qualify, and Republicans favoring stricter standards where businesses must exercise control to count. Currently, franchisors are supporting legislation in Congress, the Save Local Businesses Act, to take the issue out of regulators’ hands and mandate stricter standards for the purposes of wage-and-hour and union laws.

It's not just franchisors that should be in favor of increasing certainty in this area, of course. Joint employment is also relevant to the many logistics brokers in the last-mile industry who work with master contractors, or any owner/operator with their own subcontractors and/or employees. These last-mile businesses should also support this congressional legislation so they can know with confidence what they need to do to avoid being considered joint employers of the workers hired by their business partners.

[1] “Franchisers Seize GOP Sweep as Opportunity on Joint Employer”, Rebecca Rainey, February 3, 2025. https://news.bloomberglaw.com/daily-labor-report/franchisers-seize-gop-sweep-as-opportunity-on-joint-employer