HR4366119th CongressWALLET

Save Local Business Act

Sponsored By: Representative Comer, James [R-KY-1]

In Committee

Summary

Narrows and harmonizes the joint-employer standard. The bill tightens when two employers count as joint employers under federal labor law and makes the Fair Labor Standards Act use the same test as the National Labor Relations Act. It requires that each employer must directly, actually, and immediately exercise significant control over essential terms and conditions of employment to be a joint employer. The text lists examples of such control, including hiring, firing, setting pay and benefits, supervising day-to-day work, assigning schedules or tasks, and disciplining employees.

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  • Companies that share workers: Two firms are joint employers only when each one directly and immediately exercises significant control over core employment terms. The bill replaces a broader definition with a two-part structure in the National Labor Relations Act and aligns the Fair Labor Standards Act to that framework.
  • Employees and claimants: The narrower test changes when multiple employers can be held jointly responsible for labor or wage claims, because each employer must meet the direct-control standard.
  • Rule application and definitions: The FLSA amendment cross-references the NLRA test but keeps FLSA-specific meanings for "employee" and "employer" and does not create new funding or enforcement powers.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Limits joint-employer liability for firms

This bill would narrow when two firms count as joint employers under federal labor law. It would allow a joint-employer finding only if each firm directly, actually, and immediately controls essential job rules. Examples include hiring, firing, pay and benefits, day-to-day supervision, schedules or assignments, and discipline. For wage-hour law (the FLSA) the bill would use the same test but apply the FLSA meanings of "employee" and "employer." If enacted, franchisors, staffing agencies, contractors, and client firms would be less often treated as jointly liable for another firm's workers.

Sponsors & CoSponsors

Sponsor

Comer, James [R-KY-1]

KY • R

Cosponsors

  • Hern (OK)

    OK • R

    Sponsored 9/2/2025

  • Onder

    MO • R

    Sponsored 11/17/2025

Roll Call Votes

No roll call votes available for this bill.

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