Save Local Business Act

This bill would establish a specific standard for determining joint-employer status under federal labor law, requiring that a person exercise direct and immediate control over essential employment terms to be considered a joint employer. Such control would be demonstrated through actions such as hiring and firing, setting pay rates and benefits, supervising daily work, or administering discipline. By requiring actual and significant control, the proposal aims to clarify when one entity is legally responsible for the employees of another employer.

This bill affects employers and employees subject to federal labor laws, particularly those involved in business relationships where joint-employer status may be at issue. It specifically impacts persons or entities that exercise direct control over another employer's staff through actions such as hiring, firing, determining pay and benefits, or supervising day-to-day tasks. The legislation also affects workers whose employment terms, work schedules, and disciplinary actions are managed by more than one business entity.

• Establishment of joint employer standard. The bill specifies that a person is considered a joint employer under federal labor law only if they exercise direct, actual, and immediate significant control over essential employment terms.
• Criteria for demonstrating employer control. Significant control may be established through actions such as hiring and firing, setting pay rates and benefits, providing day-to-day supervision, or assigning specific work schedules and tasks.
• Disciplinary and administrative authority. The measure includes the administration of employee discipline as a factor that demonstrates the level of control required for a joint employer designation.

• H.R. 4366, Save Local Business Act
  Mar 16, 2026 · As reported by the House Committee on Education and Workforce on December 30, 2025

The bill modifies federal labor law by establishing a specific standard for determining joint employer status based on the direct and immediate exercise of significant control over employment terms.

The bill aims to establish a specific federal standard for joint-employer status, requiring that a person must directly and immediately exercise significant control over essential employment terms—such as hiring, pay, and supervision—to be considered a joint employer.