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Biden Vetoes Bill on Labor Rule for Contract Workers, Cites Bargaining Protections

May 3, 2024, 05:35 PM

President Joe Biden vetoed a bipartisan measure on Friday that aimed to repeal a U.S. labor board rule regarding the classification of contract and franchise workers. The rule treats companies as employers of many of their contract and franchise workers, which impacts businesses like McDonald's, Marriott International, and Taco Bill by reclassifying franchise workers as employees of their parent companies. The resolution, which had cleared both chambers of Congress by bipartisan margins, was intended to nullify the National Labor Relations Board's joint employer rule. Critics argue that the rule could harm franchises and small businesses across the country. Biden's decision cited the need for bargaining protections.