Save Local Business Act

3/13/2024, 10:31 AM

Summary of Bill S 1261

The Save Local Business Act, also known as Bill 118 s 1261, is a piece of legislation currently being considered by the US Congress. The main purpose of this bill is to clarify the definition of a joint employer under the National Labor Relations Act and the Fair Labor Standards Act.

The bill aims to provide more certainty and clarity for businesses, particularly small and local businesses, when it comes to their responsibilities as employers. It seeks to ensure that businesses are only held liable for the actions of their own employees, rather than for the employees of subcontractors or franchisees.

Supporters of the Save Local Business Act argue that the current definition of a joint employer is too broad and can lead to unnecessary legal disputes and financial burdens for businesses. They believe that by narrowing the definition, businesses will be able to operate more efficiently and effectively without fear of being held responsible for the actions of unrelated entities. Opponents of the bill, however, argue that it could potentially weaken protections for workers and make it easier for businesses to avoid liability for labor violations. They believe that the current definition of a joint employer is necessary to hold businesses accountable for the treatment of all workers, regardless of their employment status. Overall, the Save Local Business Act is a controversial piece of legislation that has sparked debate among lawmakers, business owners, and labor advocates. Its ultimate impact on businesses and workers remains to be seen as it continues to make its way through the legislative process.

Congressional Summary of S 1261

Save Local Business Act

This bill provides that a person may be considered a joint employer in relation to an employee under federal labor law only if such person directly, actually, and immediately (and not in a limited and routine manner) exercises significant control over the essential terms and conditions of employment. Such control may by demonstrated by hiring and discharging employees, determining individual employee rates of pay and benefits, day-to-day supervision of employees, assigning individual work schedules, positions, and tasks, and administering employee discipline.

Current Status of Bill S 1261

Bill S 1261 is currently in the status of Bill Introduced since April 25, 2023. Bill S 1261 was introduced during Congress 118 and was introduced to the Senate on April 25, 2023.  Bill S 1261's most recent activity was Read twice and referred to the Committee on Health, Education, Labor, and Pensions. as of April 25, 2023

Bipartisan Support of Bill S 1261

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
28
Democrat Cosponsors
0
Republican Cosponsors
28
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill S 1261

Primary Policy Focus

Labor and Employment

Potential Impact Areas

Labor standardsLabor-management relationsWages and earnings

Alternate Title(s) of Bill S 1261

Save Local Business ActSave Local Business ActA bill to clarify the treatment of 2 or more employers as joint employers under the National Labor Relations Act and the Fair Labor Standards Act of 1938.
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