© Reuters. FILE PHOTO: The United States Chamber of Commerce building is seen in Washington, D.C., U.S., May 10, 2021. REUTERS/Andrew Kelly/File Photo
By Daniel Wiessner
(Reuters) – Several major U.S. business groups sued a federal labor board on Thursday, seeking to strike down a rule treating many companies as employers of contract and franchise workers and requiring them to bargain with their unions.
The groups led by the U.S. Chamber of Commerce, the country’s largest business lobby, said in a complaint filed in a Tyler, Texas federal court that the rule, which takes effect Dec. 26, violates U.S. labor law and improperly favors unions.
The groups said the rule will cost businesses billions of dollars and cause disruptions in an array of industries including retail, construction, hospitality and healthcare.
The rule issued by the National Labor Relations Board (NLRB) will treat companies as “joint employers” of contract and franchise workers when they have control over key working conditions such as pay, scheduling, discipline and supervision, even if it is indirect or not exercised.
Joint employers can be held liable for violating workers’ rights to organize and can…
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