Local franchise owners take great pride in running their businesses, contributing to their communities, and providing employment and training to more than 8.1 million employees across the U.S.
The IFA advocates for a clear joint employer standard that makes clear businesses are not liable for other businesses they do not control. A common sense standard of joint employment protects the vibrant franchise business community by providing certainty for brands and business owners alike.
For many franchisees, an expanded joint employer standard lead to increased costs, less equity, and less support from their brands. In fact, according to IFA research, the expanded joint employer standard has cost franchise businesses $33.3 billion per year, resulted in 376,000 lost job opportunities, and led to 93% more lawsuits. For more information on joint employer, please visit jointemployerfacts.com.
IFA engages with Congress and regulatory agencies such as the National Labor Relations Board, the Equal Employment Opportunity Commission (EEOC), and the Department of Labor to address the joint employer standard.
As franchise businesses emerge from the COVID-19 pandemic, they have deep concerns with a bill called the Protecting the Right to Organize Act (PRO Act, H.R. 842), which the U.S. House passed on March 9, 2021. In the name of advancing labor unions, the PRO Act would negatively transform the franchise business model by discouraging established brands from licensing their name, products and processes to independent franchisees due to fear of nearly unlimited joint employment liability.
IFA is determined to stop the PRO Act. Here are materials you can use to advocate for your business.
PRO Act Resources:
- IFA article on how the PRO Act will specifically affect franchising
- The Hill published an op-ed written by IFA President & CEO Robert Cresanti
- Institute for the American Worker white paper on the whole bill
- Coalition for a Democratic Workplace letter with 240+ business groups
- Labor Bill Comparison Chart - PRO Act 2021
- PRO Act Franchise Coalition letter
If you would like to get involved, please become a part of the Franchise Action Network and help protect small businesses across America.