Bill: 119-HR4366
Save Local Business Act
Last action: 1-13-2026
Version: 2025112413
Current status: Rule H. Res. 988 passed House.
Bill is currently in: House
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Summary Provided by Congressional Research Service

Save Local Business Act

This bill provides that a person may be considered a joint employer of the employees of another employer under federal labor law only if such person directly, actually, and immediately exercises significant control over the essential terms and conditions of employment. Such control may by demonstrated by hiring and discharging employees; determining individual employee rates of pay and benefits; day-to-day supervision of employees; assigning individual work schedules, positions, or tasks; or administering employee discipline.

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1. Short title2. Clarification of joint employment

1. Short title

This Act may be cited as the "Save Local Business Act".

2. Clarification of joint employment

(a) National Labor Relations Act amendments - Section 2(2) of the National Labor Relations Act (29 U.S.C. 152(2)) is amended—

(1) by striking "The term ""employer" and inserting "(A) The term ""employer"; and

(2) by adding at the end the following:

(B) An employer may be considered a joint employer of the employees of another employer only if each employer directly, actually, and immediately, exercises significant control over the essential terms and conditions of employment of the employees of the other employer, such as hiring such employees, discharging such employees, determining the rate of pay and benefits of such employees, supervising such employees on a day-to-day basis, assigning such employees a work schedule, position, or task, or disciplining such employees.

(b) Fair Labor Standards Act of 1938 amendments - Section 3(d) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(d)) is amended—

(1) by striking "Employer"" includes" and inserting "(1) ""Employer"" includes"; and

(2) by adding at the end the following:

(2) An employer may be considered a joint employer of the employees of another employer for purposes of this Act only if each employer meets the criteria set forth in section 2(2)(B) of the National Labor Relations Act (29 U.S.C. 152(2)(B)) except that, for purposes of determining joint-employer status under this Act, the terms "employee" and "employer" referenced in such section shall have the meanings given such terms in this section.

December 30, 2025Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed