H.R. 4366 · On the floor · Labor and Employment

Save Local Business Act

Sponsor: James Comer (R-KY)

What it does

• Define a joint employer relationship under federal labor law as requiring direct, actual, and immediate significant control over essential terms and conditions of employment.
• Specify that control must be demonstrated through hiring and discharging employees, determining pay and benefits, day-to-day supervision, assigning work schedules or positions, or administering discipline.
• Narrow the standard for joint employer liability to exclude indirect or indirect control over employment terms.

Official summary

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.

Latest action

Jan 13, 2026: Rule H. Res. 988 passed House.

Committee: House Education and Workforce