IFA Issues Statement on President Obama’s FY 2017 Budget Proposal

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FOR IMMEDIATE RELEASE


Contact:

Matthew Haller, 202-460-8356

Jenna Weisbord, 310-995-0839

mhaller@franchise.org

jweisbord@franchise.org

@franchising411


IFA ISSUES STATEMENT ON PRESIDENT OBAMA’S FY 2017 BUDGET PROPOSAL


WASHINGTON, Feb 10- International Franchise Association President & CEO Robert Cresanti issued the following statement in response to President Obama’s fiscal year 2017 budget proposal, which includes significant budgetary increases for labor and workforce regulators:


“Franchise small business owners are incredibly resilient and  continue to grow at a greater rate than the overall economy, projected to add 278,000 jobs for working Americans in their local communities.


“Unfortunately, the rate growth is suboptimal due to regulatory actions that continue stream out of  the Obama Administration, particularly in the area of labor policy. The FY 2017 budget proposed by the President seeks to increase funding for the U.S. Department of Labor (DOL), granting even more resources to an agency determined to erode a successful model of doing business for small business owners without evidence of wrongdoing.


“Particularly troubling is the proposed 21.5 percent increase for the DOL’s Wage and Hour Division, which recently announced its plans to target businesses with a new “joint employer” standard that strips franchisees of their autonomy and equity.  This budgetary increase would also allow the Wage and Hour Division to implement its plans to more than double the salary threshold for overtime exemptions, a policy change that will effectively demote thousands of workers while reducing training opportunities and workplace flexibility. The only positive about this budget is that it is effectively dead-on-arrival thanks to the pro-business majorities who control Congress.   


“Small business owners and their employees need a pro-growth environment that focuses on the health of the entire economic eco-system and allows entrepreneurship to flourish and working Americans to move up the pay scale, not an avalanche of regulation that wastes taxpayer money while threatening the viability of the nation’s 795,000 franchise business establishments.”


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About the International Franchise Association

Celebrating 55 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 780,000 franchise establishments that support nearly 8.9 million direct jobs, $890 billion of economic output for the U.S. economy and 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.


1900 K St., N.W., Suite 700   Washington, DC 20006  USA


Phone: +1 202/628-8000    Fax: +1 202/628-0812     www.franchise.org

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