IFA Encouraged by Acosta™s Views on Obama-era Joint Employer Regulation

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Jenna Weisbord, 310-995-0839

jweisbord@franchise.org

@franchising411


IFA Encouraged by Acosta’s Views on Obama-era Joint Employer Regulation


WASHINGTON, March 22—During today’s confirmation hearing, Labor Secretary designee Alexander Acosta’s views on the Obama-era joint employer regulation came to light in response to a question from Senate HELP Committee Chairman Lamar Alexander (R-Tenn.). The impact of the expansion of the joint employer standard has been the subject of extensive debate in the House and Senate, as it has curtailed job creation by franchise business owners and other small businesses due to the uncertainty created by the potentially limitless liability standard and its application by labor unions and class action attorneys.


In response to Chairman Alexander’s question, Acosta responded that the NLRB and DOL’s approach was “untraditional” and seemed to favor the traditional definition that a direct employer should be responsible for the employee’s schedule, pay, and hours worked. Full clip here.


“It was encouraging to hear Labor Secretary designee Acosta’s views on the joint employer issue. The traditional test has existed under bipartisan support for decades, yet the new standard was adopted by the previous administration, reversing decades of precedent and settled law. While there are important steps the Trump administration can take to mitigate the impact of the new standard, such as naming two new members to the NLRB and reversing ‘guidance’ promulgated by the DOL, only Congress can truly solve the web of confusion created by the Obama administration’s multi-agency regulatory overreach against franchise owners and the frivolous litigation it has led to around the country.” – Matt Haller, Senior Vice President, Government Relations & Public Policy


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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.


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Phone: +1 202/628-8000    Fax: +1 202/628-0812     www.franchise.org

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