The National Labor Relations Board on Thursday overturned an Obama-era decision that classified many franchises as a "joint employer" for the purposes of labor law—a ruling one business group described as a holiday gift for employers.

NLRB voted in 2015 to expand the definition of joint employer. Since then, many business groups have been lobbying lawmakers to pressure the board into reversing the ruling. The Republican majority on the board did just that in a 3-2 decision.

The International Franchise Association, which has been one of the most vocal critics of the joint employer expansion, said the decision came "in time for the holidays."

"Today's decision helps create certainty for franchisors and franchisees in the near term and highlights the need for long-term certainty in this area," IFA Senior Vice President of Government Relations and Public Affairs Matt Haller said.

Cicely Simpson, executive vice president of public affairs for the National Restaurant Association, said the 2015 decision "stacked the deck against small businesses and inserted uncertainty into day to day operations."

"Today's decision restores years of established law and brings back clarity for restaurants and small businesses across the country," she said.

David French, senior vice president for government relations at the National Retail Federation, said the decision "restore the common-sense definition of what constitutes this type of employment relationship that stood for decades."

"Today's vote puts an end to those harmful and unnecessary changes that exposed companies to almost limitless liability," he said.

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