President Joe Biden vetoed a Republican-led attempt to repeal a labor rule that classified companies as employers of their contract and franchise workers, requiring bargaining with their unions.
Despite Congress narrowly passing the proposal, Biden’s veto, backed by a Democratic majority, is unlikely to be overridden. The rule, halted by a federal judge in March, awaits potential appeal.
In a memo, Biden emphasized the rule’s importance in preventing companies from evading legal responsibilities by controlling workers indirectly through contractors.
He accused Republicans of prioritizing corporations over workers and unions.
The contentious rule treats companies as “joint employers” of contract and franchise workers if they exert control over working conditions like pay and scheduling.
Critics, mainly Republicans and business groups, argue it forces companies into bargaining despite limited control over conditions.
Franchise business groups warn of disrupting the franchise model, potentially obligating companies like McDonald‘s to negotiate with franchisee employees.
Matthew Haller of the International Franchise Association criticized Biden’s veto, suggesting harm to underrepresented groups relying on franchising for business opportunities.
The rule’s implementation was initially set for February but faced delays and was ultimately blocked by U.S. District Judge J. Campbell Barker.
Barker, a Trump appointee, deemed the rule invalid, citing its treatment of companies as employers despite lacking control over worker conditions.
The National Labor Relations Board (NLRB) now has until the end of the month to challenge Barker’s ruling, underscoring ongoing debates over worker rights and corporate responsibility in labor relations.
