IFA and 15 Franchisee Associations Unite in Opposition to Overtime Regulations

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FOR IMMEDIATE RELEASE


Contact:

Jenna Weisbord, 310-995-0839

jweisbord@franchise.org

@franchising411


IFA AND 15 FRANCHISEE ASSOCIATIONS UNITE IN OPPOSITION TO OVERTIME REGULATIONS 


WASHINGTON, Sept. 4, 2015 – The International Franchise Association, the world’s largest organization representing franchise owners, and 15 franchisee associations, submitted comments today declaring the Department of Labor’s (DOL) proposed changes to overtime regulations are fundamentally flawed and bad for employers and employees. IFA also asserts that the DOL failed to extend the comment period on the radical changes that will severely hamper job growth in the small business sector.


“The proposed change to the overtime rule is another action by the Obama Administration that dramatically alters how small businesses operate,” said IFA President & CEO Steve Caldeira, CFE. “We are extremely disappointed that the Department of Labor refused our request for additional time to analyze these proposed changes. These proposed changes are severe enough to warrant additional analysis.”


Under the proposed rule, the Obama Administration would nearly double the current threshold for overtime pay from $23,660 to $50,440 for workers working more than 40 hours per week.


In written comments, IFA said that in the long run, the employees of franchise businesses will lose under the proposed rules. The proposal “drastically impacts not only employers, but also creates unavoidable consequences for employees who are reclassified from exempt to non-exempt, as they will lose the flexibility they have previously enjoyed. If employees are reclassified to hourly workers, they will only be compensated for those hours they work.”


“Since the Department elected not to grant employers’ reasonable requests for more time to provide meaningful input on the proposal, it’s pretty clear the Department will dismiss employers’ actual substantive input too,” added Caldeira.


In addition to IFA, the comments were signed by Asian-American Hotel Owners’ Association, North American Association of Subway® Franchisees, Papa Murphy’s Franchisee Association, Old Fashioned Franchise Association, KF Franchisee Association, Inc., Franchise Management Advisory Council, Franchise Business Services, Coalition of Franchisee Associations, National Franchisee Association, Association of Kentucky Fried Chicken Franchisees, International Pizza Hut Franchise Holders’ Association, Popeye’s International Franchisee Association, Jimmy John’s Franchisee Association, American Pizza Community and Dunkin Donuts Independent Franchise Owners, Inc.


To view IFA’s comments in full, click here.


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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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