FOR IMMEDIATE RELEASE
Contact:
Matthew Haller, 202-662-0770
Jenna Weisbord, 202-662-0766
mhaller@franchise.org
jweisbord@franchise.org
IFA STATEMENT ON FEDERAL CONTRACTOR MINIMUM WAGE RULES
WASHINGTON, June 16, 2015 —International Franchise Association President & CEO Steve Caldeira, CFE, released the following statement regarding the U.S. Department of Labor’s proposed rule to raise the minimum wage to $10.10 per hour for federal contract workers:
“The Department of Labor’s proposed rules raising the minimum wage for contract workers, including employees of franchised establishments on military bases, will lead to lost jobs, less sales and fewer hours for employees. Franchisees that are forced to pay a steeply increased minimum wage, while lacking the flexibility to increase prices, will be unable to renew their contracts, closing franchise establishments and depriving military communities of jobs often held by military dependents.
“We are extremely disappointed in the proposed rule, and we hope the Department of Labor will provide sufficient time for businesses to submit comments, with the goal of mitigating the proposal’s negative impact on franchised small businesses.”
In February, President Barack Obama issued Executive Order 13658, directing the Department of Labor to issue regulations to increase the minimum wage for workers of federal contractors to $10.10 per hour.
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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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