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Jenna Weisbord, 310-995-0839
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MINIMUM WAGE FAIRNESS LEGISLATION INTRODUCED IN CONGRESS

The Wage Increase Fairness Act Would Ensure All Small Businesses, Franchised or Not, Are Treated Equally

 

(WASHINGTON, D.C., JUNE 27) – The International Franchise Association (IFA) today praised the introduction the Wage Increase Fairness Act, federal legislation to ensure that franchise businesses are treated equally to other small businesses when cities, states, or the federal government increase the minimum wage.

H.R. 3515, the “franchise fairness” legislation – introduced by Reps. Scott Peters (D-Calif.), Rodney Davis (R-Ill.), and Dusty Johnson (R-S.D.) ensures that independently-owned franchise businesses are treated equally under the law regarding minimum wage increases and implementation timelines.

In the past several years multiple jurisdictions including Seattle and Minneapolis have sought to require franchise businesses to implement minimum wage increases on a faster scale than non-franchised businesses, even though franchise businesses are independently-owned and face the same challenges as non-franchised businesses.

“This bill ensures that the federal government recognizes what those in the franchise sector know to be true – that franchise businesses are local businesses,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs. “IFA is thankful for the hard work of Reps. Peters, Davis, and Johnson for their work in ensuring a level playing field for American small businesses.”

The Wage Increase Fairness Act amends the Fair Labor Standards Act to provide “franchise fairness” regarding minimum wage levels across the country.  The bill ensures that all businesses are treated equally with regard to minimum wage policy, preventing ordinances from requiring franchises to implement new minimum wage levels at a faster pace than non-franchised businesses.

Notably, H.R. 3515 still allows for states and localities to raise minimum wages above the federal level. The bill would only prevent states and localities from requiring that franchise businesses implement new minimum wage levels at a faster pace than non-franchised businesses.

America’s 733,000 franchise businesses together create 7.6 million jobs and add more than $606 billion to the U.S. economy. Additionally, 81% of American voters have a positive view of locally-owned franchise businesses.

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About the International Franchise Association
Celebrating 58 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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