House passes bill clarifying employer‑status rules after NLRB decision

Representative Green said HB 116 was drafted in response to a National Labor Relations Board (NLRB) administrative decision that broadened employer definitions to include certain forms of indirect or theoretical control. The third substitute restates that administrative or adjudicative rulings do not constitute generally applicable law unless adopted through formal rulemaking, statute or a court decision. “This is an attempt to tell our agencies to continue to conduct business as usual,” Green said.

Sponsor’s intent and scope: The substitute inserts language in several parts of code to reaffirm the longstanding state framework for employer determination, including sections addressing professional employer organizations, workers' compensation, minimum wage and franchise relationships. The bill preserves agency ability to consult federal decisions for guidance but says such administrative rulings are not automatically binding statewide unless formally adopted.

Debate and support: Several Representatives who opposed earlier drafts said the substitute addresses their concerns about instructing state agencies to disregard federal orders. Representative Nelson said the revised text respects the rule of law by preserving paths for appeal or formal federal rulemaking; others praised the sponsor for working through objections and said the substitute reduces litigation risk.

Vote and next steps: The House passed the third substitute of HB 116 on a 62–11 vote and will refer the bill to the Senate for consideration.