Save Local Business Act

The Save Local Business Act would narrow and clarify when two or more employers are considered joint employers under the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FLSA). Under the bill, an employer would be deemed a joint employer only if each employer directly, actually, and immediately exercises significant control over the essential terms and conditions of employment of the other employer’s workers (for example: who is hired or fired, pay and benefits, supervision, scheduling, and disciplining). For the FLSA, joint-employer status would be recognized only if the NLRA-style criteria are met, with employee and employer definitions aligned to FLSA’s own definitions for purposes of joint-employer determinations. In short, the bill tightens what counts as joint-employer responsibility, potentially limiting shared liability between related businesses (like franchisors, contractors, and staffing firms) when control is not direct and significant.