For Immediate Release

Contact: Terry Hill 202-628-8000

WASHINGTON, DC Aug. 14 – The International Franchise Association today said the federal government’s drastic requirement that businesses fire workers whose Social Security information cannot be matched with government records could create turmoil in the nation’s workforce and worsen employee shortages in many industries.

“The franchising industry depends on a stable and resilient workforce,” IFA Pres. Matthew Shay said.  “The worksite enforcement reforms announced by the White House recently could undermine the important economic contributions that America’s 800,000 franchise establishments provide.” 

Shay said the franchising industry supports enforcement of immigration laws, but this requirement is unwise and untimely, especially during a period of financial uncertainty. 

Responding to the government’s announcement of administrative immigration reforms which include the Social Security “No Match” regulation that directs employers, upon notification, to dismiss workers whose name and Social Security numbers do not match, the franchise association leader also urged reconsideration of other issues including a proposed increase in civil fines by approximately 25 percent, the expansion of criminal investigations and the expansion of the E-Verify program to all federal government contractors. 

“The immigration problems this nation faces today cannot be solved simply by changing the rules that employers have to follow,” Shay said.  “What we need is comprehensive reform.  Without it, the franchising industry will suffer as will the entire U.S. economy.” 

IFA and a number of national business and trade associations have joined efforts for comprehensive reform through the Essential Worker Immigrant Coalition, a broad-based group concerned with the shortage of both semi-skilled and unskilled “essential worker” labor.  It supports policies that facilitate the employment of essential workers by U.S. companies that are unable to find American workers. 

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Ed. Note: IFA’s positions on key business issues can be found at www.franchise.org, along with information about the 1,200-plus franchise systems that are members of the association.  IFA also represents more than 10,000 franchisees and hundreds of firms that supply goods and services to the industry. 

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