Columbus, OH – The Buckeye Institute recently filed public comments with the U.S. Department of Labor on proposed rules from the Biden Administration that would harm Ohio businesses and workers. 

In comments to the National Labor Relations Board on the standard for determining joint-employer status, Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute, wrote:

“If, under the revised rule, a franchisor risks liability for employment practices at every independent franchise across the country, the franchise model is in peril. Franchisees will have less autonomy and will soon resemble branch managers for large international corporations, which is not the business model most franchisees envisioned.”

“Regulatory rule changes that threaten the success of small businesses and franchises will endanger millions of Ohio jobs and jeopardize a labor market that already suffers from a higher unemployment rate and lower labor force participation than the national average.”

The Buckeye Institute recommended that the National Labor Relation’s Board withdraw the proposed rule due to its negative impact on Ohio small businesses and franchises.

In comments to the Department of Labor on employee or independent contractor classification under the Fair Labor Standards Act, Logan Kolas, an economic policy analyst at The Buckeye Institute’s Economic Research Center, wrote:

“By denying workers the flexibility to determine the employment arrangements that work best for them, the rule will also force independently contracted workers into a type of employment they do not prefer and have repeatedly rejected.”

“Under the rule, employers will likely insist that workers maintain hours that benefit the employer instead of the employee. That insistence will push workers out of the labor market, which will be especially harmful to states like Ohio that already have fewer workers now than they did before the pandemic.”

The Buckeye Institute recommended that the Department of Labor maintain the rule that took effect in March 2021. 

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