If enacted, legislation would subject franchise businesses and their employees to binding arbitration overseen by a government appointee, giving over control on sweeping decisions on wages, benefits, and scheduling practices

WASHINGTON, D.C. – The International Franchise Association (IFA) today released the following statement ahead of the U.S. House of Representatives’ scheduled vote on H.R. 5408, the Faster Labor Contracts Act (FLCA):

“IFA supports policies that empower franchise owners and employees to negotiate workplace agreements that reflect local business realities while preserving the rights of all parties involved,” Michael Layman, IFA Chief Advocacy Officer. “Unfortunately, the FLCA accomplishes neither of those objectives. If enacted, the legislation would subject franchise businesses and their employees to binding arbitration with decisions made by federal bureaucrats, who would have the authority to impose sweeping decisions on matters like wages, benefits, and scheduling practices without knowledge or the small business operations and market realities.

“Equally concerning, the FLCA offers no opportunity for appeal, making a government bureaucrat’s decision final and binding. By disenfranchising franchise owners and their workers alike, both parties are denied their rights under the collective bargaining process, and workers are powerless to reject the terms imposed upon them.”

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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.