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In time for the holidays, IFA welcomes NLRB reversal of joint employer in Browning Ferris decision

WASHINGTON, Dec. 14—International Franchise Association Senior Vice President of Government Relations & Public Affairs Matt Haller released the statement below following a welcomed decision by the National Labor Relations Board (NLRB) to revert to the joint employer standard in place prior to the Board’s 2015 decision in Browning Ferris Industries.

“We applaud the NLRB for reversing the Browning-Ferris standard which caused needless confusion and uncertainty for America’s 733,000 franchise businesses and 7.6 million employees. Today’s decision helps create certainty for franchisors and franchisees in the near term and highlights the need for long-term certainty in this area. Clearly, the board majority agrees with a significant bipartisan majority of House members who voted last month to create a bright line joint employer test in both the NLRA and FLSA by passing the Save Local Business Act. We urge the Senate to act swiftly to  codify this direct control standard so the franchise sector can remain the job creating and economic opportunity generating powerhouse that it has always been.”

In August 2015, the NLRB declared Browning-Ferris Industries, a California-based recycling company, to be a “joint employer” with Leadpoint, a staffing services company. The decision ignored more than 30 years of regulatory and legal precedent and retroactively adopted a far broader definition of “joint employer” than had ever been contemplated. IFA has been leading the charge, working with the Coalition to Save Local Businesses (CSLB) to inform Members of Congress about the devastating economic impact of redefining the current joint employer standard would have on franchised businesses and the overall U.S. economy.

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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.