IFA Praises Trump Administration Joint Employer Rule

Department of Labor proposed rule provides commonsense, workable framework for franchises to operate; IFA stresses the need for Congress to protect this policy long-term by passing the bipartisan American Franchise Act

WASHINGTON, D.C. – The International Franchise Association (IFA) today praised the U.S. Department of Labor (DOL) proposed rulemaking providing a federal, nationwide joint employer standard to ensure employees and employers have a clear understanding of joint employer status.

“The Trump Administration’s joint employer rule provides a clear and commonsense approach for America’s 832,000 franchised businesses to operate and grow,” said Matt Haller, IFA President and CEO. “This pro-franchise standard protects the independence of franchise small businesses, safeguards the equity franchisees have built in their local operations, and prevents the kind of regulatory overreach that has threatened jobs and growth in previous administrations. On behalf of the entire franchise community, we commend the Trump Administration and Acting DOL Secretary Keith Sonderling for delivering this win that will unleash opportunity, upward mobility and strengthen the franchise model as a cornerstone of the American economy.”

To safeguard this commonsense joint employer standard for the long-term, IFA is spearheading the bipartisan American Franchise Act (AFA) codifying the direct control of narrowly defined essential terms and conditions of employment for joint employer status. This legislation would ensure that future Administrations are prevented from implementing an expanded, harmful standard and that franchises have certainty to operate.

The American Franchise Act has 116 bipartisan cosponsors in the U.S. House of Representatives and companion legislation has been introduced in the U.S. Senate.

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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 more than 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.