IFA Supports Growing Bipartisan Opposition to Labor Department Overtime Regulation on Business Owners

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WASHINGTON, July 14—The International Franchise Association, the world’s largest organization representing franchise businesses, thanks Congressman Kurt Schrader (D-OR) for introducing the Overtime Reform Enhancement Act, which would lessen the impact of the U.S. Department of Labor’s (DOL) final overtime rule by gradually phasing in its increases to the salary exemption level. Congressman Schrader’s legislation demonstrates growing bipartisan concern with the extremely burdensome workplace regulation.


“Inflicting a rule with such massive change upon small businesses without a phase-in period is a stunning blow to hiring, promotion and new business development,” said IFA President & CEO Robert Cresanti, CFE. “The IFA supports Rep. Schrader’s legislation as another opportunity to ease the burden this new rule places on small business owners.”


Under the new DOL overtime rule, the Obama Administration has more than doubled the current threshold for overtime pay for workers working more than 40 hours per week from $23,660 to $47,476, which far exceeds the highest state minimum salary threshold in California of $41,600.


“We call on Congress to act quickly and consider the Overtime Reform Enhancement Act and other legislation, such as The Protecting Workplace Advancement and Opportunity Act introduced by Representative Tim Walberg (R-MI) with Chairman John Kline (R-MN), and a resolution under the Congressional Review Act introduced by Rep. Virginia Foxx (R-NC), which will provide much-needed relief to local franchise business owners who have continuously expressed how this rule will dramatically alter how businesses operate across the country,” added Cresanti.


IFA, as a leadership member of the Partnership to Protect Workplace Opportunity (PPWO), will continue to advocate for a more appropriate salary threshold. PPWO is a group of over 80 employer organizations representing the broad employer community’s, created in response to the proposed overtime rule changes. 


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About the International Franchise Association

Celebrating 56 years of excellence, education and advocacy, the International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 800,000 franchise establishments that support nearly 9.1 million direct jobs, $994 billion of economic output for the U.S. economy and 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.


1900 K St., N.W., Suite 700   Washington, DC 20006  USA


Phone: +1 202/628-8000    Fax: +1 202/628-0812     www.franchise.org

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