IFA Statement on Final DOL Overtime Rule: Latest Broadside From Biden Administration Against Small Business

Government Relations

Franchised businesses already pay higher wages, provide better benefits

WASHINGTON, April 23, 2024 – The International Franchise Association (IFA) today released the following statement on the Department of Labor’s (DOL) final overtime rule:

“This rule is the latest unnecessary and burdensome regulation from the Biden Administration targeting small businesses,” said Michael Layman, IFA senior vice president of government relations and public affairs. “It comes as many entrepreneurs continue to struggle in today’s unpredictable regulatory climate, grappling with lingering inflation, labor challenges, and high costs of goods. Small business owners, especially franchisees, need certainty to operate, and this Administration has provided them anything but predictability.”

Additionally, according to Oxford Economics, franchises already pay higher wages and offer better benefits than their nonfranchised counterparts, on average. Unfortunately, the overtime rule will limit franchisee flexibility to both reward and promote their employees.

IFA, along with our coalition partners, submitted comments in November 2023 on the proposed rule, which can be viewed here.

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About The International Franchise Association:

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) 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 approximately 806,270 franchise establishments that support nearly 8.7 million direct jobs, $858.5 billion of economic output for the U.S. economy, and almost 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and supplier companies that support the industry.

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