IFA Praises NLRB Joint Employer Rule

February 25, 2020

(WASHINGTON, D.C., FEB. 25) – The International Franchise Association (IFA) today praised the National Labor Relations Board (NLRB) for its final rulemaking on the joint employer standard under the National Relations Labor Act, which governs collective bargaining. 

“For years, franchise businesses have struggled under an expansive and unclear joint employer standard,” said Robert Cresanti, IFA President and CEO. “Today’s final rule fixes that. By restoring clarity and common sense to the definition of ‘joint employer,’ America’s franchise brands and franchise businesses will be able to grow and give back to their communities with a clear understanding of the roles and responsibilities of each party.”

“Between today’s rulemaking, the Department of Labor’s final rulemaking on joint employer, and the NLRB’s decision in the years-long McDonald’s case, the past three months represent an unparalleled amount of pro-franchise actions from the federal government and should put an end to the SEIU’s multi-million dollar and misguided campaign against franchise brands and businesses regarding joint employment law,” Cresanti said.

The union has spent $180 million of member dues to co-opt critically important issues for political gain, and this ruling puts an end to the baseless claims on joint employment law by confirming McDonald’s USA and its franchisees are not joint employers.

This rulemaking follows years of advocacy from IFA, its members, and other business organizations.

The expanded joint employer standard has cost the American economy $33.3 billion per year, led to 376,000 fewer job opportunities, and resulted in a stunning 93% increase in lawsuits against franchise businesses, according to an economic impact study jointly conducted by IFA and the U.S. Chamber of Commerce. This groundbreaking research demonstrates what businesses have long said: an expanded joint employer standard hampers growth, hinders operations, and halts hiring.

America’s 733,000 franchise businesses employ 7.6 million workers and contribute $675 billion to U.S. economic output.

Previously this year, the Department of Labor further clarified joint employer rules under the Fair Labor Standards Act, which is the primary federal law related to wages.

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About the International Franchise Association

Celebrating 60 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.

For additional information or more media inquiries, please contact Stephen Worley at sworley@franchise.org.