H.R. 4366Passed one chamberJobs & the economy
Bill would narrow definition of "joint employer" in labor law
Data as of July 11, 2026
The Save Local Business Act would require direct, hands-on control before a company counts as a joint employer.45-second read · 4 questions answered below
Decoded
What does this do?
The bill would tighten the legal definition of "joint employer" so a company is only held responsible if it directly, actually, and immediately controls key job conditions like hiring, firing, pay, scheduling, or discipline. This change would apply to both the National Labor Relations Act and the Fair Labor Standards Act.
Who does it affect?
Affects franchise businesses (fast food, hotels), staffing agencies, contractors, franchisors, parent companies, and their workers.
Why does it matter?
Under the stricter standard, parent companies and franchisors would be less likely to be held legally responsible for labor violations, unpaid wages, or unfair labor practices committed by franchisees or staffing agencies. This could limit workers' ability to hold larger companies accountable when the direct employer cannot pay damages or fix violations, or when workers seek to organize unions involving decisions made by the larger company.
Where does it stand?
- Introduced
- House committee
- House vote
- Senate — You are here
- President's desk
Right now: it passed the House and now goes to the Senate. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
Save Local Business Act
- Introduced:
- July 14, 2025
- Latest action:
- January 13, 2026
Rule H. Res. 988 passed House.
Read the official bill on Congress.govMake the call
Three steps: where you stand, your script, the call.