An increasing number of new workforce policies from the National Labor Relations Board (NLRB) and the U.S. Department of Labor (DOL) pose a significant threat to the franchise business model. New union organizing rules, changing overtime regulations, and proposed minimum wage increases all threaten to increase costs, reduce efficiency, and eliminate jobs at franchise small businesses across the country.
The most threatening of all workforce-related issues is the proposed changes to “joint employer” standard that has historically recognized the differences between franchisee and franchisor. Notwithstanding thirty years of existing law, unelected Washington bureaucrats at the NLRB are considering changes that would hold franchisor brand companies liable for charges against local franchisees, threatening to dismantle the franchise relationship that has allowed hundreds of thousands of new locally-owned small businesses to open and millions of jobs to be created.
Joint employer status has become one of the most pressing public policy issues for the industry, and IFA is working to counteract the General Counsel’s actions through a legislative and educational strategy to reach policymakers and activate grassroots supporters. In an effort to protect the franchising industry from the unelected bureaucrats of the NLRB, IFA joined the Coalition to Save Local Businesses along with a host of locally owned, independent small businesses, associations and organizations to protect all of America’s small businesses that have fueled our nation’s economic growth for decades. This coalition will require input across all sectors of the franchising industry, and the IFA encourages those who can to join the effort to save local businesses!
IFA has also launched a website with additional resources and the most up to date information on labor issues. Be sure to go to labor.franchise.org to learn more today.
For more information contact Michael Layman, Vice President of Regulatory Affairs at email@example.com.