As architect of devastating joint employer rule, Chairman McFerran has shown she wants to end franchising; Her continued NLRB leadership imperils hundreds of thousands of small businesses and the economic mandate of the incoming Trump Administration

WASHINGTON – Today, the International Franchise Association (IFA) issued the following statement in response to the planned U.S. Senate vote this week to extend the nomination of Lauren McFerran, chair of the National Labor Relations Board (NLRB), for a third five-year term:

“As the architect of the joint employer rule intentionally designed to undermine Main Street franchises, Chairman McFerran’s tenure at the NLRB has become indefensible, and the U.S. Senate must immediately reject any attempt to extend her harmful term,” said Michael Layman, IFA Chief Advocacy Officer. “Not only the future of franchising hangs in the balance, but also the mandate of the Trump administration to create more upward mobility and opportunity. Last month, the American electorate spoke loud and clear about a change of course, not more of the status quo. In the next Congress, we intend to work shoulder-to-shoulder with our bipartisan coalition of allies and champions in the House and Senate to prevent the NLRB from implementing an expanded joint employer standard by other means, and that process starts with new leadership appointed by the incoming administration.”

If McFerran is confirmed by the Democratic-controlled Senate, reported as a “last-ditch fight,” the five-member board would continue to have a Democratic majority until August 2026 when the term of Biden appointee David Prouty expires.

In March 2024, an IFA-led lawsuit defeated McFerran’s joint employer rule, which when previously implemented from 2015-2020, cost franchises $33.3 billion per year, eliminated hundreds of thousands of jobs, and increased lawsuits by 93%.

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