IFA Applauds First Step Taken to Roll Back Unlimited Joint Employer Standard
IFA APPLAUDS FIRST STEPS TAKEN TO ROLL BACK UNLIMITED JOINT EMPLOYER STANDARD
WASHINGTON, June 7—International Franchise Association applauded the recent decision by the Department of Labor to rescind the Administrator’s new interpretation of joint employer, as unlimited joint employer liability is one of the most costly and burdensome regulations impacting the franchise business model.
“While uncertainty surrounding the new joint employer standard has made it harder for America’s 733,000 franchise owners to grow and create new jobs, we are pleased the DOL is taking first steps to undo this costly regulation created by the previous administration,” said IFA’s Vice President of Public Affairs Matt Haller. “That being said, we urge Congress to now recognize the uncertainty and unreasonable costs the NLRB’s decision has placed on franchise owners and take action to find a true permanent solution.”
The impact of the expansion of the joint employer standard has been the subject of extensive debate in the House and Senate, as it has curtailed job creation by franchise business owners and other small businesses due to the uncertainty created by the potentially limitless liability standard.
“Locally owned businesses deserve as much clarity and certainty as possible so they can continue to create jobs and serve their communities, and we are hopeful that this effort led by the DOL will help produce that,” stated Haller.
About the International Franchise Association
Celebrating 56 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 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 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.