(WASHINGTON, MARCH 11) – The International Franchise Association (IFA) today released the following statement regarding the Department of Labor’s proposal to rescind the pro-business joint employer standard in favor of a much more expansive standard.
“It’s bewildering that the Biden Administration seems intent on simultaneously helping and hurting small businesses. While IFA appreciates the Administration’s work promoting small business survival through the American Rescue Plan, this new proposed rule seems intent on undoing the good that was done. We know that the expanded joint employer standard led to some 376,000 lost job opportunities the last time it was tried – it’s hard to imagine the same policy in the middle of a pandemic will somehow lead to a better result,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs.
“Franchise brands stepped up during the pandemic to provide support to their franchisees in unprecedented ways. This type of support is critical to sustaining these small business franchise owners, but is exactly the type of support that would be eliminated by expanding the joint employer standard.”
IFA, along with other business groups, is an intervener in a federal lawsuit to preserve the 2020 rule. A recent study found that an expanded joint employer standard under the NLRB cost franchise businesses $33.3 billion per year, resulted in 376,000 lost job opportunities, and led to a 93% increase in lawsuits against franchises.
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.