IFA PRAISES MEMBERS OF CONGRESS FOR URGING THE DEPARTMENT OF LABOR TO CLARIFY JOINT EMPLOYER STANDARD
FOR IMMEDIATE RELEASE
Contact:
Jenna Weisbord, 310-995-0839
[email protected]
@franchising411
(WASHINGTON, Oct. 1) – The International Franchise Association (IFA) today praised Members of Congress for urging the U.S. Department of Labor to proceed toward rulemaking on joint employment to clarify employer responsibilities for the 733,000 franchise establishments across the country.
“We applaud these bipartisan members of Congress for asking Secretary Acosta to address the unpredictability surrounding joint employer liability, which remains an impediment to the long-term viability of the franchise business model. America’s 730,000 franchises, which employ more than 8 million workers, need clear rules in order to operate successfully and help diversify wealth creation in every community across America,” said IFA Senior Vice President of Government Relations & Public Policy Matt Haller.
The letters to Labor Secretary Alexander Acosta, led by Sen. Johnny Isakson (R-Ga.) and Rep. Bradley Byrne (R-Ala.), signed by 26 Senators and 62 Members of Congress, respectively advocated for a Department of Labor rulemaking under the Fair Labor Standards Act to prevent continued misinterpretation of employment statute. They state:
The conflicting and outmoded FLSA standards for joint employment have contributed to overly costly litigation for small businesses. This is not a cost that most Main Street businesses can bear, and it is very important that unnecessary lawsuits be curbed through clear and reasonable rulemaking…
Businesses and employees in different states deserve to be subject to the same standard of joint employment liability, and this confusion could be significantly resolved by a new federal regulatory standard…
The FLSA’s joint employment requirements need to be modernized and harmonized to limit needless litigation against small businesses, as many different business formats are threatened by expensive lawsuits against multiple business partners for alleged wrongdoing against only one entity. We therefore respectfully request the Department of Labor propose and finalize a rulemaking to clarify the joint employment standard under the FLSA. It is not an exaggeration that the future success of many small businesses in the United States rests upon the clarification of the joint employer issue.
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.