FOR IMMEDIATE RELEASE

Contact:

Matthew Haller, 202-662-0770

Jenna Weisbord, 202-662-0766

mhaller@franchise.org

jweisbord@franchise.org

IFA PRESIDENT & CEO LAUDS LAUNCH OF LOCAL BUSINESS COALITION TO COMBAT EXPANSION OF JOINT EMPLOYER DEFINITION

WASHINGTON, Feb. 10, 2015 – IFA President & CEO Steve Caldeira, CFE, applauded the launch of a new coalition of local business owners and others who are concerned that the National Labor Relations Board (NLRB) will expand the definition of joint employer, ultimately undermining the employer-employee relationship and diminishing the autonomy millions of small business owners currently have over their own business.

“The recent and pending actions redefining the long-standing and widely-accepted definition of what constitutes a joint employer by the NLRB clearly represents an existential threat to the franchise business model. The pending recommendation by the NLRB’s General Counsel would upend the 780,000 locally-owned franchise businesses across the U.S. and in turn jeopardize the 8.9 million jobs they directly support. As more franchisees learned about the NLRB actions to undermine their local businesses, the more they sought an opportunity to express their disagreement with the NLRB and engage with their elected representatives. The Coalition to Save Local Businesses provides them with that platform and we’re proud to be part of it,” said Caldeira.

The Coalition to Save Local Businesses (CSLB) aims to inform Members of Congress about the potentially devastating impact that redefining the joint employer standard would have on the U.S. economy. IFA proudly supports the goal of the coalition to seek Congressional support for legislation that would codify the current and long-standing definition of what constitutes a joint employer.

Due to pending cases before the NLRB, the franchise business model faces a serious threat. 

Should the NLRB broaden the joint employer definition, it would expand franchisor responsibilities and make them more liable for franchisees’ actions.  Ultimately, this would lead to consolidation among the franchisors and force local franchisee business owners into a role similar to a store manager – or worse out of business altogether. 

In addition, expanding the joint employer definition would have wide-ranging consequences for local businesses throughout the country. The NLRB is also considering the Browning-Ferris case, which could permanently alter the employer-employee relationship for thousands of companies that rely on contractors and sub-contractors for specialized support. Should the NLRB adopt a broader definition of joint employer, many local business owners would lose their investments, workers would lose their jobs and communities would lose vital sources of economic activity.

“There’s no upside to upsetting the long-standing employer-employee relationship,” Caldeira said. “In fact, these new regulations from the NLRB would diminish entrepreneurial investment, stifling job growth and economic activity in communities from coast to coast.”

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About the International Franchise Association

Celebrating 55 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 780,000 franchise establishments that support nearly 8.9 million direct jobs, $890 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.

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