FOR IMMEDIATE RELEASE:
Contact:
Matthew Haller, 202-662-0770
Jenna Weisbord, 202-662-0766
mhaller@franchise.org
jweisbord@franchise.org
IFA OPPOSES LEGISLATION TO RAISE FEDERAL MINIMUM WAGE
WASHINGTON, April 29, 2014 —The International Franchise Association today expressed strong opposition to S. 2223, the Minimum Wage Fairness Act, sponsored by Sen. Tom Harkin (D-Iowa), that would increase the minimum wage 39 percent to $10.10 per hour and tie future minimum wage increases to inflation.
In a letter sent to members of the Senate, IFA highlighted the unintended consequences of raising the minimum wage, including fewer jobs, reduced hours and slower economic growth due to higher prices for consumers and lower foot traffic and sales for franchise owners. For the many franchise businesses that are labor-intensive and already operate on thin profit margins, this legislation could be the difference between continuing to operate and going out of business – between maintaining employees or shedding more jobs, the letter states.
“Raising the minimum wage will be detrimental to job creation and low-skilled workers trying to get started on the economic ladder,” said IFA President & CEO Steve Caldeira. “Such a drastic minimum wage increase would ripple throughout the still fragile economic recovery.”
As emphasized in the recent study on wage increases by the nonpartisan Congressional Budget Office, a mandated hike in the minimum wage could result in loss of up to one million jobs by 2016. This effect will be even more pronounced when combined with the full implementation of the Affordable Care Act’s employer mandate.
To view the full letter, please click here.
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About the International Franchise Association
The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.
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