IFA Applauds Congressional Support for Rulemaking to Address Joint Employer

Government Relations

FOR IMMEDIATE RELEASE

Contact:
Jenna Weisbord, 310-995-0839
jweisbord@franchise.org
@franchising411

WASHINGTON, Aug. 15—The International Franchise Association (IFA) today praised Rep. Bradley Byrne (R-Ala.) and Henry Cuellar (D-Texas) for putting the concerns of local business owners first and urging the Department of Labor to clarify employer responsibilities under wage and hour law to bring much-needed relief to small businesses.

In a letter sent to the Labor Secretary Alexander Acosta, Reps. Byrne and Cuellar called upon the department to develop rulemaking to clarify the current standard for determining joint employment status under the Fair Labor Standards Act (FLSA):

“We join these local employers and their employees in our states in calling upon their government to clarify these rules so that small businesses’ know the rules of the game. You previously withdrew the Wage and Hour Administrator’s overly broad administrative interpretation on joint employment in June 2017. Now we urge you to proceed toward rulemaking on joint employment under the FLSA to clarify employer responsibilities under wage and hour law…”

The ongoing uncertainty created in 2015 by the NLRB’s radical expansion of the joint employer standard continues to present significant challenges for franchisors and franchisees.

“IFA appreciates the support from Members of Congress like Rep. Bradley Byrne and Rep. Henry Cuellar who recognize the importance of providing clear, long-term rules for employers on joint employer,” said IFA Senior Vice President of Government Relations & Public Affairs Matt Haller. “IFA continues to advocate for the Save Local Business Act in Congress as the best way to address the full scope of the joint employer uncertainty facing franchise businesses in both the NLRA and the FLSA.”

To view the letter, click here.

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.