H.R. 4366 — Save Local Business Act

This section amends the definitions of "employer" in the National Labor Relations Act (NLRA, 29 U.S.C. 152(2)) and Fair Labor Standards Act (FLSA, 29 U.S.C. 203(d)) to establish a uniform standard for joint employer status. (1) The NLRA amendment specifies that an employer is a joint employer of another employer's employees only if it directly, actually, and immediately exercises significant control over essential terms and conditions of employment, such as hiring, discharging, determining pay and benefits, day-to-day supervision, assigning work schedules, positions, or tasks, or disciplining such employees. (2) The FLSA amendment applies the same criteria by cross-reference to the NLRA provision, using FLSA definitions of "employee" and "employer." (Thus, the changes narrow joint employer liability under both statutes for franchisors, contractors, and staffing agencies, among others.)