In August 2015, the National Labor Relations Board (NLRB) expanded the joint-employer standard to define joint employers as those who have direct or indirect control over employees. Under the new joint-employer standard, employers who contract with a separate company can share control over that company’s workforce.

For example, the standard allows franchisers to control and heavily monitor franchisees, including in the areas of hiring, firing and other day-to-day operations, creating unnecessary burdens for franchisees.

Witnesses at the hearing included small business executives, employment lawyers and professors, among others. They largely condemned the standard, and many agreed that it leads to fewer small business, less freedom and more lawyers.