Washington, D.C. – Sean Kennedy, executive vice president for Public Affairs at the National Restaurant Association, expressed the Association's stance on the recent Senate vote on H.J. Res. 98, the Congressional Review Act resolution regarding the National Labor Relations Board's 2023 final rule on Joint Employer Status.

Kennedy emphasized the significance of the Senate's decision, stating, "At a time when it’s next to impossible to get something passed in both Houses of Congress, yesterday the Senate came together to express their support of business owners by voting to overturn the National Labor Relation Board’s overreaching Joint Employer Rule."

Regarding the impact of the NLRB’s 2023 Joint Employer Rule, Kennedy highlighted its potential threat to the restaurant industry, noting, "The NLRB’s 2023 Joint Employer Rule threatens the foundation upon which nearly a third of the restaurant industry is built." He further explained that the rule could have adverse effects on entrepreneurship and economic growth, particularly for franchisees in the sector.

Kennedy underscored the essential role of restaurants in the American economy, stating, "Restaurants are the cornerstone of the American economy and a vital source of employment, and the new Joint Employer standard would have profound and far-reaching repercussions across the industry."

Following a summary judgement decision by the United States District Court in the Eastern District of Texas, the NLRB’s 2023 Joint Employer Rule was vacated, reverting the Joint Employer Standards to the NLRB’s 2020 Final Rule. This decision provides clarity and stability for foodservice employers and employees, aligning with the concerns raised by the National Restaurant Association.

A legal challenge to the 2023 Joint Employer Rule is ongoing in the D.C. Circuit Court, reflecting the continued efforts to address the implications of the rule on the restaurant industry.