NACS Joins Challenge to New Joint Employer Rule

ALEXANDRIA, Va. — NACS joined the U.S. Chamber of Commerce and a coalition of business advocacy groups in filing a lawsuit against the National Labor Relations Board (NLRB) in the U.S. District Court for the Eastern District of Texas over its new joint employer rule. 

The suit claims the rule violates the National Labor Relations Act and accuses the NLRB of acting arbitrarily and capriciously in violation of the Administrative Procedure Act.

The NLRB's new rule rescinds the 2020 joint employer measure, making it easier for companies to qualify as joint employers, including in franchising, contracting and supply chains, according to NACS Daily. It also broadens liability for employers and enables unions to organize across companies instead of store by store.

"If the rule is allowed to go into effect, it will have far-reaching consequences for businesses of all sizes," the U.S. Chamber of Commerce wrote in a press release. "A previously expanded joint employer rule was in place from 2015 to 2017 and cost franchise businesses, a majority of which are small businesses, $33 billion per year. That resulted in 376,000 lost job opportunities and led to 93 percent more lawsuits."

Additional co-plaintiffs include the American Hotel and Lodging Association, Associated Builders and Contractors, Associated General Contractors of America, Coalition for a Democratic Workplace, International Franchise Association, Longview Chamber of Commerce, National Retail Federation, Restaurant Law Center, Texas Association of Business and Texas Restaurant Association.

"The NLRB's new joint employer rule is the latest in a string of actions to promote unionization at all costs, even when harmful to workers, employers and our economy," said Glenn Spencer, senior vice president of the U.S. Chamber of Commerce's Employment Policy Division. "It defies common sense to say that businesses can be held liable for workers they don't employ at workplaces they don't own or control. The NLRB has been overturning numerous precedents at the behest of labor unions, so the Chamber is suing to rein in this out-of-control agency."

The full text of the lawsuit is available here.

Alexandria-based NACS is a global trade association dedicated to advancing convenience and fuel retailing. NACS advances the role of convenience stores as positive economic, social and philanthropic contributors to the communities they serve, and is a trusted adviser to retailer and supplier members from more than 50 countries.