IFA Calls on U.S. Senate to Block Re-Nomination of NLRB Chair Lauren McFerran

Government Relations

Labeling her “no friend of franchising,” IFA calls for bipartisan coalition to instill “fresh, commonsense” leadership at NLRB

WASHINGTON – The International Franchise Association (IFA) today released the following statement after the nomination of Lauren McFerran, Chairman of the National Labor Relations Board (NLRB), passed the U.S. Senate Committee on Health, Education, Labor and Pensions (HELP) along a 11-10 party line vote:

“As the architect of the ill-advised, expanded joint employer rule, Chair Lauren McFerran has proven she is no friend of franchising, and the defeat of her nomination is mission critical for the future of our business model,” said Michael Layman, IFA’s senior vice president of government relations and public affairs. “Just as common sense prevailed when a bipartisan, bicameral coalition of lawmakers joined together to stop her job-killing joint employer rule earlier this year, we call on members of both parties to halt her nomination and pave the way for fresh, commonsense leadership at the NLRB, not someone committed to the agenda of powerful special interests and union bosses. Our model is the best vehicle for upward mobility small business formation on Main Street, and it cannot exist with an expanded joint employer rule and an otherwise hostile NLRB.”

McFerran’s current term is set to expire on December 16. In May 2024, President Joe Biden nominated her for a third five-year term, meaning if she is confirmed, the five-member board would continue to have a Democratic majority until August 2026.

Last week, IFA signed a letter urging senators to reject her nomination in light of the mismanagement of the Board during her tenure, citing her, “malfeasance and mismanagement of the Board and her extreme policy agenda.”

Issued in October 2023, the expanded joint employer rule would deem franchisors and franchisees jointly liable, taking away the independence of franchise owners – the hallmark of the franchise business model. When a similar rule was issued in 2015, it cost franchised businesses $33.3 billion per year, resulted in 376,000 lost job opportunities, and led to 93% more lawsuits.

Earlier this month, the NLRB withdrew its appeal of the March 2024 ruling by the Fifth District Court of Texas that struck down the joint employer rule.

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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 companies that support the industry in marketing, law, technology, and business development.

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