IFA-Led Coalition Urges D.C. Circuit to Dismiss SEIU Challenge to 2020 Joint Employer Standard

In amicus brief, IFA cites lack of jurisdiction, argues SEIU challenge fails on the merits; warns SEIU favored joint employer standard would destabilize the franchise model by resulting in the sixth joint employer standard in the last decade; emphasizes the need for the American Franchise Act to provide certainty from continued joint employer changes

WASHINGTON, D.C. –The International Franchise Association (IFA) this week led a coalition of pro-business organizations urging the D.C. Circuit Court of Appeals to dismiss the challenge by the Service Employees International Union (SEIU) to the National Labor Relations Board’s (NLRB) 2020 joint employer rule requiring “substantial direct and immediate control” of essential terms and conditions of employment for a joint employer relationship to exist. The challenge comes as IFA pushes for Congress to pass the bipartisan, bicameral American Franchise Act to protect franchised businesses from the whipsaw of changes to the joint employer standard.

In the amicus brief, IFA makes two core arguments:

The D.C. Circuit Court lacks jurisdiction over the SEIU’s petition because Administrative Procedure Act (APA) challenges to NLRB rulemakings must be brought in federal district court—not the appellate court.
The SEIU challenge fails on the merits because the 2020 Joint Employer Rule aligns with decades of common law precedent. The SEIU proposed joint employer standard conflicts with that precedent by introducing a broad and ambiguous standard that treats “unexercised or indirect control” as sufficient to establish a joint employer relationship.

“The SEIU’s proposed joint employer standard introduces a broad and ambiguous standard that treats unexercised or indirect control as sufficient to establish a joint employer relationship, further destabilizing the franchise model by resulting in the sixth joint employer standard in the last decade. The instability underscores the need for Congress to move swiftly in passing the American Franchise Act to codify a franchise-specific joint employer standard,” said Michael Layman, IFA Chief Advocacy Officer.

Joining IFA as amici curiae were the U.S. Chamber of Commerce, Restaurant Law Center, American Hotel & Lodging Association, and Coalition for Democratic Workplace

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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 832,000 franchise establishments that support nearly 8.8 million direct jobs, $907.3 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.