Senate Passes Joint-Employer Congressional Review Act

The U.S. Senate recently passed H.J. Res. 98, a Congressional Review Act (CRA) resolution to nullify the National Labor Relations Board’s (NLRB) joint-employer final rule, by a vote of 50-48.

Sens. Manchin (D-WV), King (I-ME), and Sinema (I-AZ) crossed party lines to vote in favor of the resolution. The resolution passed the U.S. House in January, where it also enjoyed bipartisan support. It is now headed to President Joe Biden’s (D) desk for his signature.

Unfortunately, the administration announced that the president intends to veto the resolution. If the CRA is vetoed, Congress would need a two-thirds majority in both houses to override the veto. If signed into law, however, the NLRB’s final rule would be nullified, and the Board would be prevented from issuing any substantially similar rule in the future.

Minority Leader Mitch McConnell (R-KY) made remarks on the Senate floor before the vote: “The new standard amounts to more regulatory red tape threatening the very existence of small businesses, especially those that follow the franchise model … This new labor rule would add even bigger headaches and turn small business owners – including many in my home state of Kentucky – into middle managers.”

The lead sponsors of the resolution, Sens. Manchin and Cassidy (R-LA) released statements in response to the vote. “The NLRB’s joint-employer rule would shut the door for thousands of citizens who want to start a business and fulfill the American Dream when we should be focused on bolstering our economic growth and empowering Main Street America,” Sen. Manchin said. “I’m glad our CRA resolution has now passed both the House and the Senate, and I encourage President Biden to accept this bipartisan, bicameral rejection of this confusing and unnecessary rule.”