International Franchise Association Disappointed SCOTUS Rejected Joint Employer Case
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International Franchise Association Disappointed SCOTUS Rejected Joint Employer Case
Legislation to clarify joint employer decision more important now than ever, says franchise group
Washington, D.C. (January 8, 2018) – The International Franchise Association, the nation’s leading advocate for small and franchise businesses, today is disappointed that the United States Supreme Court rejected a case that would have determined whether a business should be considered a joint employer of an employee that was hired by one of their contractors.
“The vague and confusing joint employer standard continues to threaten small business owners’ livelihood, stifling growth and employment in communities nationwide,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs. “The Supreme Court had the opportunity to provide the 733,000 franchise businesses and their 7.6 million employees across the country with much-needed clarity. But unfortunately, ambiguity in the law remains.”
The United States Supreme Court today announced that it will not hear the case Hall vs. DirecTV. The case arose after technicians hired by DirecTV contractor DirectSAT and DirectSAT’s subcontractors accused DirecTV of neglecting to pay them overtime under the Fair Labor Standards Act (FLSA). The case had been appealed by DirecTV after the Fourth Circuit ruled the satellite company was considered a joint employer and was liable for the unpaid wages.
“Because the Supreme Court declined to rule on the merits of the DirecTV case, legislation is needed now more than ever to bring clarity to the business community – particularly the hundreds of thousands of small and franchise businesses across America,” said Haller.
In July, the IFA along with along with the American Hotel & Lodging Association, Asian American Hotel Owners Association, Coalition of Franchisee Associations and the Restaurant Law Center, filed a joint amicus brief requesting the Fourth Circuit grant a cert petition, allowing the Supreme Court to review the decision.
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About the International Franchise Association
Celebrating 56 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.