IFA Files Joint Amicus Brief to Protect Franchise Business Model

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FOR IMMEDIATE RELEASE


Contact:

Jenna Weisbord, 202-662-0766

jweisbord@franchise.org

@franchising411


IFA Files Joint Amicus Brief to Protect Franchise Business Model


WASHINGTON, July 5—The International Franchise Association, along with the American Hotel & Lodging Association, Asian American Hotel Owners Association, Coalition of Franchisee Associations and the Restaurant Law Center, have filed a joint amicus brief in support of DIRECTV’s effort to combat the decision by the United States Court of Appeals for the Fourth Circuit which claimed multiple entities should be held jointly responsible for the same employees.


In DIRECTV, LLC AND DIRECTSAT USA, LLC v. MARLON HALL, ET AL., the court held that the “fundamental question” guiding the joint-employment analysis is whether two or more persons or entities are ‘not completely disassociated’ with respect to a worker.


“The Fourth Circuit’s DIRECTV decision exacerbated the differing joint employment standards that local franchise businesses must comply with under the Fair Labor Standards Act,” said IFA’s Vice President, Federal Government Relations Michael Layman. “Small business owners deserve as much clarity and certainty as possible, so they can continue to create jobs and serve their communities, and we urge the courts to resolve the conflict among the circuits by adopting a common law agency joint-employer standard.”  


The amicus brief requests Fourth Circuit grant a cert petition, allowing the Supreme Court to review the decision, as the IFA seeks demonstrate that this new joint-employer standard makes it difficult for the franchise business model to continue in the form that has been successful for decades.


“Franchising is a powerhouse of small business economic activity and wrongfully defining franchisees as employees of the franchisors instead of as business owners, threatens the viability of franchising as a business model,” added Layman. 


To view the full brief, please click here. 


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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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