Editor’s note: a guest post by Raymond Griffin, Jr., a member of the Louisiana Republican State Central Committee.

 “Who is your boss?” is a question most Louisianans can answer without hesitation. It’s the person who hired you, signs your paycheck, and sets your schedule. But federal regulators during the Obama and Biden administrations turned this simple question into a convoluted regulatory morass. Now, Congress finally has the chance to fix it, but they must do so the right way. Rather than the sector-specific carveout proposed in the American Franchise Act (AFA), lawmakers should embrace the broad, across-the-board approach of the Save Local Business Act (SLBA). For local business owners and their employees, the difference between these two bills is the difference between creating a fair playing field for all and a system where the government picks winners and losers. 

At the core of the issue is something called “joint employer” status. During the Obama and Biden years, the National Labor Relations Board (NLRB) tried to expand the definition of joint employer status to include companies that exercise indirect or reserved control, rather than actual, exercised control over essential terms of employment. In other words, a larger company could be held liable as the “employer” of another company’s workers, even if they have no direct say in hiring, firing, or daily supervision. 

For example, imagine you own a small local manufacturing business that supplies parts to a large national brand. You hire your own workers, train them, and pay them. But because the large brand sets quality standards for the parts you supply, regulators could decide that the large company is also the “boss” of your employees. You are now exposed to legal risks you can’t control, and you are stripped of your independence as a small business owner. 

As mentioned earlier, one proposed solution is the American Franchise Act (AFA). If passed, the AFA would protect fast-food chains and hotels, ensuring the corporate brand isn’t considered the “joint employer” of the local franchise owner’s staff. But what about the rest of the economy? What about local construction crews, healthcare staffing agencies, and independent truckers? They would have no protection under the AFA. 

While the supporters of the AFA surely mean well, the AFA leaves these industries out in the cold and keeps them subject to the whims of federal regulators. This problem is too large to be solved with sector-specific carveouts. We need a solution that works for everyone, and that solution is the Save Local Business Act (SLBA). 

The SLBA sets a clear, permanent standard for the entire economy. To be considered an employer under this bill, a company must exercise direct, actual, and immediate control over workers. Simply put, if you don’t hire, fire, or supervise the employees, you aren’t their employer. Makes sense. 

Unlike the AFA, this bill applies to every industry, from construction to suppliers to logistics. It restores the commonsense principle that the business you actually work for is the one responsible for you. 

Louisiana’s House delegation has already shown leadership on this issue. Speaker Mike Johnson and Representative Julia Letlow co-sponsored the Save Local Business Act in 2021, recognizing that Washington should not pick winners and losers. Majority Leader Steve Scalise and the other Congressional Republicans from Louisiana have also stood firm by not co-sponsoring the narrower American Franchise Act.

We need Senators Bill Cassidy (R-LA) and John Kennedy (R-LA) to bring that same leadership to the Senate. As this debate moves forward, I urge them to reject the half-measures of the American Franchise Act (AFA) and throw their full support behind the Save Local Business Act (SLBA). Our Senators must ensure that regulatory clarity and fairness extend to every employer in Louisiana.