Can These State and Local Developments Effect You?

April 10, 2018

Reports from states and cities across the U.S.

By Jeff Hanscom

As the calendar turns to April, it marks the beginning of the downhill side of the majority of state legislative sessions, with some having already come and gone for 2018. Through the first quarter, IFA has travelled across the country advocating in a number of state capitols and city halls on behalf of franchising. Below is a mid-session “report card” on the various issues in play.

Joint employer

Continuing successes in 2015, 2016 and 2017, IFA continues to advocate for joint employer legislation in state legislations across the country. With 18 states having already enacted bills addressing the issue, the majority mark is in reach by the end of the 2019 session. Through early March, legislation is currently active in:

• Iowa

• Idaho

• South Carolina

• Ohio

• Nebraska

• Missouri

• Virginia

• Pennsylvania (expected introduction in coming month)

Franchise relationships

A number of states introduced franchise relationship bills this session, including New Jersey, Pennsylvania and Florida. The Florida legislature adjourned March 9 once again without advancing franchise relationship legislation to a single Senate committee hearing, which is the same result as 2017. IFA again partnered with local leaders along with numerous Florida franchisees to oppose the legislation. While it’s too early to predict, there is a good chance we’ll be back on the same merry-go-round again in Tallahassee in 2019.

Similar legislation in Harrisburg, Pa. and Trenton, N.J. has also failed to gain momentum. IFA was successful in working with legislators in Harrisburg to have its bill referred for further study, effectively ending its chances for advancement in 2018. With New Jersey still in active session, IFA will continue opposition efforts there. Democrats now control all three branches in New Jersey (House, Senate and Governor), which adds an extra layer of complexity to the issue should it gain steam in the statehouse.

In the Cities

• Minneapolis: Last summer, Minneapolis followed in the footsteps of Seattle and passed a minimum wage ordinance, increasing the city’s minimum wage to $15 per hour. However, franchise establishments have until 2022, whereas similarly situated non-franchised businesses have two extra years, required to be at $15 by 2024. IFA continues to oppose discriminatory wage ordinances across the country.

• Philadelphia: Similar to New York City, Philadelphia’s City Council is in the process of drafting predictive scheduling legislation, which will most likely only apply to “big box” retail stores and franchise establishments, regardless of employee counts. IFA will oppose the discriminatory aspects of the legislation along with coalition partners in the Keystone state.

Staying on guard

The above represents recent developments in state legislatures. There are a number of states, such as Florida, where legislative sessions have wrapped up for the year, and fortunately the franchise community has avoided negative legislation to this point. On the flip side, there are an equal number of states still in active session – California and New Jersey to name two – where advocates need to remain on guard, as issues can go from dormant to moving very quickly at the state level. Cities continue to be a major focus, and we will continue to work toward equal treatment for franchise businesses under any ordinance. Overall, there are certainly no shortage of issues in flux around the country, both positive and negative, for franchising. Join us in the effort to protect and promote the business model and the franchising community at every turn.

Jeff Hanscom is Vice President of State Government Relations and Public Policy for the International Franchise Association. Find out more at savelocalbusinesses.com and franchiseeconomy.com.