H.R. 4366 · 119th Congress · House
Save Local Business Act
Introduced 2025-07-14 · Sponsored by Rep. Comer, James [R-KY-1] (R-KY) · Last updated 2026-03-31
Last action (2026-01-13): Rule H. Res. 988 passed House.
Summary
Raises the bar for when a big corporation can be held responsible as a joint employer for a franchise or subcontractor's labor violations. Under this bill, a company only counts as a joint employer if it directly handles hiring, firing, pay, scheduling, or discipline. Good for franchise owners who want clear legal lines, but harder for workers to hold parent companies accountable.
The Good
Narrows joint employer liability for small businesses
Defines joint employer status to require direct, actual, and immediate significant control over essential employment terms. This clarifies when a franchisor or contractor is jointly responsible for another company's employees, providing certainty for small business owners.
The Bad
May reduce worker protections in franchise and contractor arrangements
A narrow joint employer definition makes it harder for workers to hold parent companies accountable for labor violations committed by their franchisees or subcontractors. Workers at franchise locations may have fewer legal options when their immediate employer violates wage and safety laws.
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