Coalition backs House labor bill to prohibit federal funding for joint employer rule, electronic union voting

A coalition of senior living groups and other business organizations is urging support in the House of Representatives for the labor appropriations bill, which they say includes “critical” policy riders that would prohibit the federal government from using funds to implement the “joint employer” final rule or allow electronic voting in union elections.

The Coalition for a Democratic Workplace sent a letter Monday to the House to voice its support for the FY25 Labor, Health and Human Services, Education, and Related Agencies appropriations bill. The coalition counts among its members the American Health Care Association / National Center for Assisted Living, the American Seniors Housing Association, Argentum and the National Association of Real Estate Investment Trusts.

The National Labor Relations Board issued the final joint employer rule in October after proposing a rule in September 2022 and receiving more than 13,000 comments.

The CDW said that the rule would have “devastating consequences” economy-wide and that the rule promotes collective bargaining by placing unions in the middle of business-to-business agreements.

The new rule was set to go into effect March 11, but a federal judge vacated it March 8 in response to a US Chamber of Commerce-led lawsuit, saying that the rule “would be contrary to law” and that the rescission of the 2020 standard that it was to replace would be “arbitrary and capricious.” That ruling was appealed by the NLRB in May.

Senior living and care industry representatives previously told McKnight’s Senior Living that the new rule was “much broader and more vague” than the previous rule and would present greater risk for employers that contract with services providers, “creating greater liability for the actions of others.”

‘Radical policy changes and long-shot litigation’

“The NLRB’s joint employer rule will have devastating consequences economy-wide, and it will decimate the franchise business model, which has allowed millions to achieve the American dream of owning their own business,” CDW Chair Kristen Swearingen said in a statement. “The board chose to pursue bad policy, but Congress is capable of righting the ship.”

In the letter, the coalition said the NLRB  is wasting existing resources on “radical policy changes and long-shot litigation.” The group said proposed “dramatic” increases to the NLRB’s FY25 budget should include policy riders that ensure that the agency’s resources are focused on its mission.

Along with the joint employer rule, the group bashed efforts by the NLRB to move to electronic voting and away from in-person, secret ballots in union elections, a move that the CDW alleged would increase the risk of coercion and fraud, expose workers to intimidation and harassment, result in a lack security or credibility, and waste agency resources. 

“These policy riders are vital to safeguarding the economy and workers’ right to free and fair representation elections,” Swearingen said. “CDW urges the House to pass the labor appropriations bill with these provisions intact.”