WASHINGTON, April 1- The International Franchise Association released the statement below following the Department of Labor Notice of Proposed Rulemaking: Joint Employer Status under the FLSA:
“Through this proposal, the Department of Labor has the chance to undo one of the most harmful economic regulations from the past Administration and replace it with a rule that creates certainty for America’s 733,000 franchise businesses. An expanded joint employer standard has held back tens of billions of dollars in economic output each year due to a proliferation of frivolous lawsuits, precipitating significant changes to the way franchise brands interact with their local owners. The effect has rippled across the economy, causing tens of billions of dollars in lost economic output and job creation. We are pleased the Labor Department has taken this important step in removing a cloud of uncertainty over their future operations," said IFA’s SVP Government Relations & Public Affairs Matt Haller.
Celebrating 58 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.