IFA Applauds Court Ruling Overturning DOL Overtime Rule

WASHINGTON – The International Franchise Association (IFA) today released the following statement after the U.S. District Court for the Eastern District of Texas struck down the Department of Labor’s (DOL) final overtime rule:

“Small businesses can breathe a sigh of relief that this unworkable rule has been overturned,” said Michael Layman, IFA Chief Advocacy Officer. “We applaud the court’s action, which will have the effect of protecting jobs and providing more certainty for franchise owners to operate. The rule would have forced employers to reduce hours, demote many salaried workers to hourly, and cut jobs to manage costs. Research shows that franchised businesses already pay higher wages, and today’s ruling will empower more franchises to grow without the threat of another unworkable government mandate.” 

The ruling comes after IFA and a coalition of business groups challenged the final rule, which would have increased the overtime salary threshold on July 1, 2024, with a second increase to $58,656 scheduled for January 1, 2025. The ruling permanently vacates the overtime rule.

Additional businesses and business groups joining IFA in the lawsuit include: the Plano Chamber of Commerce, American Hotel and Lodging Association, Associated Builders and Contractors, National Association of Convenience Stores, National Association of Home Builders, National Association of Wholesaler-Distributors, National Federation of Independent Business, Inc., National Retail Federation, Restaurant Law Center, Texas Restaurant Association, Cooper General Contractors, and DASE Blinds.

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About the International Franchise Association:

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) 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 approximately 806,270 franchise establishments that support nearly 8.7 million direct jobs, $858.5 billion of economic output for the U.S. economy, and almost 3 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.

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