Colorado Capitol Report

In this Capitol Report:

• CACI Congressional Luncheon: All in the Family—Agreement & Disagreement
• NLRB Rules Against Business, Says Franchisors Liable For Labor Violations of Franchisees

CACI Congressional Luncheon: All in the Family—Agreement & Disagreement

Left to right: Congresswoman Diana DeGette, Congressman Mike Coffman, Congressman Ken Buck, Congressman Jared Polis and Congressman Ed Perlmutter Photo by Evan Semon

The second, biennial CACI Congressional Luncheon featured five of the seven members of the State’s U.S. House of Representatives delegation who agreed and disagreed on a wide range of issues before an audience of about 400 CACI members and guests Wednesday at the Ritz Carlton Denver.

U.S. Representatives Ken Buck (R), Mike Coffman (R), Diana DeGette (D), Ed Perlmutter (D) and Jared Polis (D) touched on topics ranging from the political atmosphere in the national’s capitol and working together as a delegation for Colorado to budget challenges, trade agreements and the fate of the U.S. Export-Import Bank, which has not been reauthorized by the Congress.

Left to right: Tricia Smith, CACI, Congresswoman Diana DeGette, Chuck Berry, CACI, and Secretary of State Wayne Williams. Photo by Evan Semón.

The Representatives also discussed upcoming, controversial changes to labor rules by the Obama Administration, the role of Federal and state governments in energy policy as well as legislative successes for Colorado from each of the Representatives.

Joe Rice, Government Relations Director, Lockheed Martin Space Systems, moderated the panel and presented the Representatives with a variety of business-related questions. He also asked the Representatives several questions submitted by the audience.

Several of the Representatives said being involved with CACI and attending the CACI Congressional Luncheon is one of the best ways for CACI members to convey their concerns to the state’s Congressional Members.

For more information about CACI’s Federal Policy Council, contact Leah Curtsinger,

Congressman Mike Coffman and CACI’s Leah Curtsinger Photo by Evan Semón

CACI State and Federal Policy Representative, at 303.866.9641.

For news media coverage of the Luncheon, read:

“Colorado Congress members feud over energy regulations, Ex-Im Bank,” by Ed Sealover, The Denver Business Journal, August 26^th.

NLRB Rules Against Business, Says Franchisors Liable For Labor Violations of Franchisees

Yesterday, the National Labor Relations Board (NLRB) announced a landmark, unprecedented decision in the Browning-Ferris joint-employer case:  Companies will now be liable for labor violations of franchisees, therefore potentially making all franchisors a joint-employer.

Rumors of the pending decision have been circulating since last fall, but the ramifications of this decision for employers are just now being spelled out.

“The Board is overturning years of established law that has worked to help grow business and feed our economy,” said Angelo Amador of the National Restaurant Association. “The NLRB is already using its new rationale to dismantle the franchisor-franchisee model, which would stifle entrepreneurship and obstruct small businesses’ ability to continue to create jobs in an increasingly challenging economic and regulatory environment.”

Meanwhile, Colorado Attorney General Cynthia Coffman on August 11^th signed a letter along with the attorneys general of  Alabama, Michigan, Nevada, South Carolina and Utah to Mark Pearce, NLRB chairman, about the Board’s “efforts . . . to redefine the legal standards used to determine joint-employer status.”

The six attorneys general said, “This change could significantly disrupt commercial relationships between franchisors and their franchisees, employers and their subcontractors, and potentially even between businesses and their suppliers and vendors.”

The National Association of Manufacturers (NAM) reacted strongly to the NLRB ruling.  Linda Kelly, NAM Senior Vice President and General Counsel, issued a statement that said: “today’s decision is a loss for manufacturers, employers and employees who have become targets of the NLRB’s aggressive agenda.”

In addition, the U.S. Chamber of Commerce strongly criticized the Board’s ruling:

“This decision has broad implications as it appears to upend decades of settled law defining who the employer is under the National Labor Relations Act,” said Randy Johnson, senior vice president for Labor, Immigration and Employee Benefits at the Chamber.

CACI is mutually affiliated with both NAM and the U.S. Chamber of Commerce.

“The NLRB is pushing an anti-business agenda that contradicts CACI’s mission to promote a healthy business climate,” said Leah Curtsinger, CACI State and Federal Policy Representative, “Because of this, CACI will continue working to protect contracts and the franchisee-franchisor business relationship.”

CACI has been working hard to educate its members through its Federal Policy Council about the potential ill effects of a joint-employer ruling.  Leah has met with the staff of the nine members of the Colorado Congressional delegation to explain the business perspective on the issue.  In addition, Leah was been working closely with the International Franchise Association (IFA) to bring franchise businesses in Colorado together to educate each other about the issue.

“Now that we have the Browning-Ferris ruling and NLRB statement in front of us,” Leah said, “We will evaluate the actual ramifications of the decision and create a plan of attack.”

For more information on the implications for the business community of the NLRB decision, contact Leah at 303.866.9641.

For news media coverage of the NLRB decision and related issues, read:

“Labor board ruling may boost union bargaining power,” by Daniel Wiessner, Reuters, August 27^th.

“McDonalds may get pinched by labor ruling,” by Daniel Wiessner, Reuters, August 27^th.

“NLRB rewrites ‘joint employer’ rule, upends business relationships in franchising, outsourcing,” by Kent Hoover, The Denver Business Journal, August 27^th.

“In landmark case, labor board will let more workers bargain with their employer’s employer,” by Lydia DePillis, The Washington Post, August 27^th.

“NLRB rules against business in pivotal joint-employer decision,” by Tim Devaney, The Hill, August 27^th.

“NLRB Upends Franchising and Contracting in Landmark Case,” by Connor D. Wolf, The Daily Caller, August 27^th.

“Franchises fear OSHA has adopted NLRB’s ‘joint employer’ approach,” by Kent Hoover, The Denver Business Journal, August 26^th.