2 versions

CosmeticWhat changed in REPORTED IN HOUSEcompared with INTRODUCED IN HOUSE (Jul 14, 2025)

Technical corrections only. The v2 version of the bill, H.R. 4366, includes minor formatting changes and adds the word "Amendments" to the subsection titles in Section 2, clarifying that these sections amend existing acts. No substantive policy changes were made between v1 and v2.

H.R. 4366119th CongressIntroduced Jul 14, 2025

Save Local Business Act

Reported To HouseLabor and EmploymentMajor

View bill text

Sponsor: Rep. Comer, James [R-KY-1]
Committees: Education and Workforce Committee (primary)
Last action: Jan 13, 2026

Bottom line

This bill significantly narrows the legal definition of 'joint employer' under federal labor laws, reducing the circumstances under which multiple entities can be held jointly responsible for a single group of employees.

What it actually does

This bill amends both the National Labor Relations Act (NLRA) and the Fair Labor Standards Act of 1938 (FLSA) to establish a uniform, narrower definition of 'joint employer.' It specifies that an employer can only be considered a joint employer if it directly, actually, and immediately exercises significant control over essential terms and conditions of employment, such as hiring, firing, setting pay, supervising, or scheduling.

Proponents argue

Proponents argue that the bill provides crucial clarity and certainty for businesses, particularly those operating under franchise or contracting models, by preventing them from being held liable for employees they do not directly control. They contend that the current broader standard stifles economic activity, increases litigation risks, and discourages job creation by imposing undue burdens on businesses.

Opponents contend

Opponents argue that this bill shields large corporations from their responsibilities to workers, making it significantly harder for employees to bargain collectively or seek redress for wage and hour violations when multiple entities exert control over their working conditions. They contend it undermines worker protections and allows primary employers to evade accountability by outsourcing labor.

The bill is very short and can be read quickly, but its implications are far-reaching and require significant background knowledge of labor law to fully grasp.

Section 2(a)

Clarification of Joint Employment under the National Labor Relations Act

prominently featuredmoderately complex

This provision amends the National Labor Relations Act (NLRA) to define a joint employer. Under this amendment, an employer is considered a joint employer of another employer's employees only if it 'directly, actually, and immediately, exercises significant control over the essential terms and conditions of employment.' Examples of such control include hiring, discharging, determining pay and benefits, day-to-day supervision, assigning work, or disciplining employees.

GroupImpactMechanismScale

GroupFranchisors and client companiesImpactReduced legal liability and compliance burdens related to employees of their franchisees or contractors.MechanismStricter definition of joint employer limits the scope of shared responsibility.ScalePotentially affects thousands of franchise businesses and companies using staffing agencies or contractors.

GroupEmployees seeking to organize or bargain collectivelyImpactPotentially harder to identify and bargain with all relevant employers, limiting collective action and accountability.MechanismNarrower joint employer standard makes it more difficult to establish a bargaining relationship with a larger entity.ScaleAffects workers across various sectors, particularly those in multi-employer settings.

Supporters argue

Supporters argue this clarifies the legal standard, preventing businesses from being held responsible for workers they do not directly manage, thereby fostering entrepreneurship and reducing compliance burdens, especially for franchise models.

Critics contend

Critics contend this definition makes it more difficult for workers to hold large corporations accountable for labor violations or to engage in collective bargaining, as it allows primary employers to distance themselves from the working conditions of their outsourced or franchised labor force.

Tradeoffs

This provision balances the desire for business certainty and reduced liability for indirect employers against the goal of ensuring worker protections and accountability for all entities that exert control over employment conditions.

Section 2(b)

Clarification of Joint Employment under the Fair Labor Standards Act of 1938

prominently featuredmoderately complex

This provision applies the same 'direct, actual, and immediate significant control' standard for joint employment to the Fair Labor Standards Act of 1938 (FLSA), which governs minimum wage, overtime pay, and child labor. It ensures consistency with the NLRA amendment, clarifying that the FLSA's definitions of 'employee' and 'employer' still apply within this context while adopting the new joint employer criteria.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

CosmeticWhat changed in REPORTED IN HOUSEcompared with INTRODUCED IN HOUSE (Jul 14, 2025)

H.R. 4366119th CongressIntroduced Jul 14, 2025

Save Local Business Act

Reported To HouseLabor and EmploymentMajor

View bill text

Sponsor: Rep. Comer, James [R-KY-1]
Committees: Education and Workforce Committee (primary)
Last action: Jan 13, 2026

Bottom line

What it actually does

Proponents argue

Opponents contend

The bill is very short and can be read quickly, but its implications are far-reaching and require significant background knowledge of labor law to fully grasp.

Section 2(a)

Clarification of Joint Employment under the National Labor Relations Act

prominently featuredmoderately complex

GroupImpactMechanismScale

Supporters argue

Critics contend

Tradeoffs

Section 2(b)

Clarification of Joint Employment under the Fair Labor Standards Act of 1938

prominently featuredmoderately complex