IFA LAYS OUT WORKER PROTECTION GOALS
FOR IMMEDIATE RELEASE
Contact:
Jenna Weisbord, 310-995-0839
[email protected]
@franchising411
In Letter to HELP, Ed & Workforce Committee Leadership, IFA Offers to Help Craft Policy Proposals that Protect both Employees and the Economy
WASHINGTON, June 20 – The International Franchise Association today stated its desire to engage with Congress on proposed legislation regarding worker protection and employee no-poaching provisions.
In the letter to Senate Health, Education, Labor, and Pensions (HELP) Committee chairman Lamar Alexander (R-Tenn.) and ranking member Patty Murray (D-Wash.), as well as House Education & the Workforce Committee chairwoman Virginia Foxx (R-N.C.) and ranking member Bobby Scott (D-Va.), the IFA spelled out its desire to work in a bipartisan fashion to develop targeted policy solutions that would both provide employees with sufficient protections and avoid harming the economy.
IFA addressed non-compete and “no-poaching” clauses sometimes found in employment contracts at franchise businesses, noting that “there are legitimate and necessary applications of non-compete and no-poaching clauses” and acknowledging that “in some circumstances, such provisions can be used inappropriately.”
In part, the letter reads:
“In instances where some form of “no-poaching” provisions are deemed necessary by franchisors to address those legitimate concerns and prevent damage to the brand and its franchisees, IFA suggests that the form and scope of those provisions be carefully crafted so that they impose only those restrictions on employee opportunities that are reasonable and necessary. In this manner, IFA is confident that there can be a solution that protects brand value and, at the same time, ensures that a new generation of unit employees will continue to grow and advance, benefiting unit employees, franchisees, and franchisors alike. […]
“IFA appreciates the concerns… and notwithstanding our differences on various provisions, we share the goal of ensuring worker protections. IFA stands ready to work with policymakers throughout the legislative process.”
Locally-owned franchise businesses are projected to grow by 1.9 percent this year, for a total of 759,000 units. That growth is projected to result in 8.1 million direct jobs and create $451 billion in economic output – 3 percent of US GDP.
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.