IFA Opposes New Joint Employer Guidelines From Labor Department

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FOR IMMEDIATE RELEASE

 


Contact:

Matthew Haller, 202-460-8356

Jenna Weisbord, 310-995-0839

mhaller@franchise.org

jweisbord@franchise.org

@franchising411


IFA OPPOSES NEW JOINT EMPLOYER GUIDELINES FROM LABOR DEPARTMENT


WASHINGTON, Jan.20- International Franchise Association Senior Vice President of Public Affairs Matt Haller released the below statement following new guidelines issued today by the Department of Labor focused on joint-employer. The new rulings would hold small business owners responsible for what they can’t control and unfairly blame one company for the mistakes of another. 


“IFA opposes any regulatory change that unwarrantedly holds franchisors responsible for their franchisees employees. For franchising, advancement of an ‘economic realities’ test is truly problematic. The brand protection and measures a franchisor takes should not provide the opening for WHD to attack brand companies or for trial lawyers to file unscrupulous lawsuits leveraging this new guidance in the courtroom. The very model of franchising is based upon common interests in one another’s success– that’s how America’s 3,000+ franchises have created a common consumer experience across a large chain of restaurants, hotels, retail shops or auto repair centers, while creating the ability for a local family to exercise their desire to be a small business owner.


“We appreciate and encourage Chairman Kline and others to exercise their congressional oversight function to ensure small business owners are not unfairly targeted by overzealous regulators or trial lawyers.” 


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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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