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Jenna Weisbord, 202-662-0766
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@franchising411
IFA APPLAUDS LEGISLATION TO DELAY DOL OVERTIME REGULATIONS; URGES ADDITIONAL ACTION TO PREVENT AUTO-INDEXING
WASHINGTON, Sept. 28—International Franchise Association praised Congress for bringing relief for small business owners everywhere by passing H.R. 6094, the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act introduced by Rep. Tim Walberg (R-MI). This legislation provides a six-month delay which will help America’s 733,000 franchise establishments that employ nearly 7.6 million workers by delaying the implementation of the overtime rule until June 1, 2017.
“A six-month delay in implementation is the least Congress can do to ensure compliance with such massive change imposed by the Labor Department on small business owners and their employees,” said IFA President & CEO Robert Cresanti, CFE. “We applaud Rep. Walberg and bipartisan members of Congress for recognizing the burden this rule places on franchises and how dramatically this will alter how businesses operate across the country, but urge them to take additional steps to mitigate the impact of the automatic increases imposed by the draconian rule.”
The DOL’s May 2016 final rule raised the salary threshold for exempt employees serving in executive or professional capacities, often known as the “white collar” exemption, from $23,660 to $47,476. By more than doubling the current salary exemption threshold and requiring businesses to comply before the end of the year, the DOL has issued a crushing burden to America’s franchise business owners.
Cresanti added that “the passage of this legislation demonstrates the growing bipartisan concern with the extremely burdensome workplace regulations. The franchise business model is a proven job creator and career builder, but this rule will curtail advancement opportunities and hurt the very people it is intended to help.”
The IFA called on Congress to consider other legislation such as the Overtime Reform Enhancement Act introduced by Rep. Schrader (D-OR) and a resolution under the Congressional Review Act introduced by Rep. Virginia Foxx (R-NC) as other opportunities to ease the burden this new rule and provided much-needed relief to local franchise business owners.
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About the International Franchise Association
Celebrating 56 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 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 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.