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ISA and "NLRB Ruling Threatens Sign Industry Contractor-Subcontractor Arrangements" Article


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"NLRB Ruling Threatens Sign Industry Contractor-Subcontractor Arrangements" - Article

http://txsigns.associationbuyersguide.org/item/47-nlrb-ruling-threatens-sign-industry-contractor-subcontractor-arrangements

http://www.isa.myindustrytracker.com/en/article/63958

The National Labor Relations Board (NLRB) recently swept away more than 30 years of precedent governing the employer-employee relationship in a ruling that could adversely affect thousands of American manufacturers and businesses – including those in the sign and visual communications industry.

The decision stemmed from a case [read more] in which one contractor supplied employees to another firm. The NLRB determined that both companies should be considered joint employers of a single workforce. Before the NLRB’s ruling, in order to be considered a joint employer, two or more companies must have exercised direct operational and supervisory control (hiring, firing, disciplining, etc.) over an employee. But under this new interpretation, the “direct control” standard has been turned into an “indirect control” test that sucks in thousands of American businesses.

Recent legislation introduced in the House by Rep. John Kline (R-MN) and in the Senate by Sen. Lamar Alexander (R-TN), would amend the National Labor Relations Act to make the long-standing joint employer standards part of the law—in effect overturning the recent NLRB decision.

If let stand, the NRLB decision could mean that sign companies that hire installers could be held directly responsible for labor law violations by the subcontractors, and sign companies that serve as subcontractors could find control of their own companies weakened. The NLRB’s decision also threatens sign industry franchises, as it makes franchisors responsible for franchisee employees. Franchisees also potentially could be impacted by labor union action against the franchisor.

This ruling upsets longtime business models, will increase labor costs and have a negative impact on economic growth and job creation.

ISA is part of a coalition of like-minded manufacturing organizations that has been opposing the NLRB’s actions on this critical issue and will continue to support efforts that will negate or overturn the NLRBs unfortunate and ill-advised decision.

Join ISA in supporting the legislation by contacting your legislator to let them know you support the Protecting Local Business Opportunity Act.

ISA will continue to monitor these changes and will provide education to let sign companies know how this ruling might affect them. For more information, please contact ISA's David Hickey.

So I got this today and maybe I'm misinterpreting this but...

It looks like ISA wants to come to the aid of the wrong side, AGAIN.

First...as in most states, especially here on the west coast you can only legally subcontract when you yourself are a contractor, or licensed contractor. So when it comes to the rule of law, this is nothing new and nothing that needs to be altered. Contractors licensing laws protect the employee, employer, primary contractor, subcontractor and consumer.

I see "Franchise" included in the article so it makes me think that ISA is trying to get some of their large base or members (FastSigns) to bypass the contractors licensing law as we've discussed here

http://www.thesignsyndicate.com/forums/index.php?/topic/6169-controversy-over-electric-signs-splits-industry-a-no-brainer/

As a primary contractor you are solely responsible, I see what looks like word play as well, as if to cause panic or emotion. Maybe I'm getting this wrong, maybe not.

As I've said before nothing will kill an industry faster then when you can have anyone, and that would include a Home Depot clerk to have the ability to sell, execute and subcontract a home/commercial improvement contract whether it's repair of modification and be protected from laws that a normal contractor are held under. The chain of accountability, responsibility is broken when you have a third party that is not held to the same respects as a contractor, that how most laws are written. If I'm reading this article right, ISA is trying to come to the aid of those who lack the knowledge or know how of this industry that obviously cannot get their own contractors license.

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You have enemies? Good. That means you've stood up for something, sometime in your life. - Winston Churchill

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