SHRM Supports the Congressional Review Act (CRA) to Repeal the National Labor Relations Board's (NLRB) Joint Employer Final Rule

ALEXANDRIA, Va. —Emily M. Dickens, SHRM Chief of Staff, Head of Public Affairs & Corporate Secretary, issued the following statement in response to the Congressional Review Act (CRA) and the National Labor Relations Board's Recent Final Rule on Determining Joint Employer Status:

“SHRM strongly urges President Biden to sign the Congressional Review Act (CRA) and overturn the National Labor Relations Board's final rule on determining joint employer status. There has been significant opposition from various stakeholders due to the lack of clarity and consistency regarding the criteria for establishing a joint employment relationship. 

SHRM is concerned with the broad drafting of the rule, creating a joint employer relationship through "indirect or reserved" control over a third party by organizations. We stress the need for a clear, consistent, and easily identifiable standard, reducing litigation and confusion for workers and employers. 

Organizations use various work arrangements to meet their business needs and stay competitive in the global market. With a veto of the CRA, President Biden will effectively limit the options organizations will have to fulfill their needs with third parties, which in turn will limit opportunities for businesses and contractors. 

Through bipartisan efforts, Congress has utilized the legislative process to revoke the final rule in recognition of these concerns. President Biden should endorse the CRA and respect the legislative process as the voice of the American people is reflected through their elected representatives. 

SHRM remains committed to advocating for workplace policies and laws that aim to clarify the standard for joint employment status under the NLRA. This is essential for providing greater predictability to HR professionals and business leaders involved in contractor or service relationships, reducing litigation, and fostering innovation in the workplace and broader economy”. 

About SHRM

SHRM is a member-driven catalyst for creating better workplaces where people and businesses thrive together. As the trusted authority on all things work, SHRM is the foremost expert, researcher, advocate, and thought leader on issues and innovations impacting today’s evolving workplaces.  With nearly 340,000 members in 180 countries, SHRM touches the lives of more than 362 million workers and their families globally. Discover more at SHRM.org.