In comments to the U.S. Department of Labor’s Notice of Proposed Rulemaking, IFA urges recission of the Biden Administration 2024 rule that led to widespread confusion; calls for a final rule to clarify the economic reality of the franchisor-franchisee relationship, reduce unnecessary burdens caused by frivolous legal challenges, and better serve the regulated community and workers alike

WASHINGTON D.C. – Today, the International Franchise Association (IFA) submitted comments in response to the U.S. Department of Labor (DOL) Notice of Proposed Rulemaking regarding the standard for determining independent contractor status.

The comments, available here, outline IFA’s approach promoting clear, consistent, and legally sound worker-classification standards that advance three core objectives:

  1. Align with longstanding statutory and judicial precedent;
  2. Distinguish legitimate independent contractor relationships from unlawful misclassification;
  3. Preserve the economic and legal independence that is foundational to the franchise business model.

“IFA applauds the Trump Administration’s balanced approach on independent contractors, and urge swift finalization of the proposed rule, which will reduce frivolous litigation and protect the entrepreneurial pathways that franchising provides to Americans across every corner of the country,” said Michael Layman, IFA Chief Advocacy Officer. “We are pleased that DOL is correctly grounding the independent contractor analysis in decades of U.S. Supreme Court precedent and urge them to go further by confirming that franchisees are independently owned and operated small businesses — not employees of their franchisors. A final independent contractor rule is essential to franchising – a model that promotes small business and creates a pathway for individuals who wish to start their own businesses, create jobs, and maximize their participation in the American economy.”

# # #

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.

Search