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Cotton Statement on the NLRB's Ruling in the Browning-Ferris Case

August 28, 2015

 

Washington, D.C.— Senator Tom Cotton (R-Arkansas) today released the following statement on the National Labor Relations Board's ruling in the Browning-Ferris case:

"The National Labor Relation Board's ruling in the Browning-Ferris case wrongly overturns a 50-year old definition of 'joint-employer' that is relied on by franchises nationwide. The franchisee model has been one of great economic success. In Arkansas, there are nearly 10,000 franchises and more than 770,000 nationwide. These businesses employee 8.5 million people - more than the combined populations of Arkansas, Mississippi, and New Mexico.

"But the NLRB's decision sets the stage to take away a franchisee's ability to set working conditions and pay rates for employees. Instead, it makes corporate headquarters with no knowledge of local areas liable for local franchise employees, even if that employee lives thousands of miles away and has no interaction with the company headquarters.  This will lead to less flexibility and higher costs for franchisees and ultimately to fewer entry-level jobs. And I fear this ruling could be a step towards labor unions confiscating portions of fast-food workers' paychecks to pay for political causes.

"I am hopeful that impartial courts will strike down this ruling, just as they have with other instances of NLRB overreach. But rest assured, I will work with my colleagues in the Senate to protect Arkansas small business owners and workers."