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### President Biden Vetoes Republican-Backed Measure on Labor Board Rule

By Daniel Wiessner

President Joe Biden made good on his promise to veto a Republican-backed measure aimed at repealing a U.S. labor board rule that treats companies as the employers of many contract and franchise workers. The rule requires these companies to bargain with the unions representing these workers. The proposal narrowly passed Congress, and it is unlikely that Republicans will be able to gather the two-thirds majority needed to override Biden’s veto.

The National Labor Relations Board rule that Biden is upholding aims to ensure that employers cannot avoid their legal responsibilities by indirectly controlling workers through contractors. This rule defines companies as “joint employers” of contract and franchise workers, even if the control they exert over key working conditions is indirect or not actively exercised.

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### Biden’s Support and Republican Opposition

President Biden criticized Republicans for aligning themselves with companies that seek to undermine unions and workers’ rights. He emphasized the importance of protecting workers from exploitation by holding companies accountable for their treatment of contract and franchise workers.

Some critics of the rule, predominantly Republicans and major business groups, argue that it is unjust to compel companies to negotiate with unions when they have limited influence over working conditions. They fear that the rule could disrupt established business practices, particularly within the franchise model.

### Franchise Businesses Voice Concerns

Groups representing franchise businesses, such as the International Franchise Association, warn that the rule could have adverse effects on the franchise model. They caution that requiring companies like McDonald’s to engage in collective bargaining with franchisee employees could jeopardize the livelihoods of underrepresented groups, including minorities, women, and veterans who often turn to franchising for business opportunities.

Matthew Haller, president and CEO of the International Franchise Association, criticized President Biden for neglecting the interests of small businesses and franchising by upholding the rule. He highlighted the potential detrimental impact on marginalized communities seeking entrepreneurship through franchising.

### legal Challenges and Future Implications

Despite the veto and legal challenges, the fate of the rule remains uncertain. U.S. District Judge J. Campbell Barker in Texas blocked the rule in March, citing concerns that it could categorize companies as employers without sufficient control over workers’ conditions. The National Labor Relations Board has the option to appeal this decision by the end of the month.

In conclusion, the debate over the National Labor Relations Board’s joint employer rule underscores the ongoing struggle between labor rights and business interests. President Biden’s veto and the subsequent legal battles highlight the complexities of regulating employer-worker relationships in the modern economy.

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