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Jenna Weisbord, 202-662-0766
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@franchising411
IFA APPLAUDS PASSAGE OF PRO-FRANCHISEE BILL IN LOUISIANA LEGISLATURE
WASHINGTON, June 10, 2015 – The International Franchise Association, the world’s largest organization representing franchise owners, is applauding the Louisiana legislature for approving pro-franchisee legislation (H.B. 464). The legislation clearly establishes franchisees as the sole employer of their workers. The legislation received strong bipartisan support in both the Senate and House and now awaits the governor’s signature, which we expect him to sign soon.
“States are recognizing the importance of defining the difference between franchisors and franchisees before unelected federal bureaucrats in Washington try to dramatically alter the long-standing joint employer standard for all franchise small businesses,” said IFA President & CEO Steve Caldeira, CFE. “Louisiana should be applauded for its leadership in tackling this issue head on. As the National Labor Relations Board continues its assault on the franchising model, it’s heartening to see state legislatures stand up for the franchisees in their states that are creating jobs and opportunities for workers and business owners. Even more important, they are doing it in a bipartisan way.”
Louisiana is among one of the first states in the union to approve such a measure. Texas and Tennessee have also acted on similar legislation. Specifically, the legislation establishes that an employee of a franchisee is not an employee of the franchisor. Furthermore, the measure outlines that it is the franchisee that is responsible for the employment relationship including hiring, firing, discipline, supervision and direction of the employee. The franchisee and franchisor are considered separate entities and therefore not joint employers, unless they have an arrangement where the two entities share or co-determine such matters relating to the essential terms and conditions of employment.
The National Labor Relations Board (NLRB) has been weighing the question of whether McDonald’s should be considered a “joint employer” with its franchisees. Current law dictates that franchisors and franchisees are not joint employers and it is the franchisees that are solely responsible for the setting of wages for employees. Any decision the NLRB makes on the joint employer status of McDonalds could have far reaching impact on franchisees throughout the economy. The Service Employees International Union has urged the NLRB to make the change.
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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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