Iowa Takes Stand on Joint Employer
FOR IMMEDIATE RELEASE
Contact:
Jenna Weisbord, 310-995-0839
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@franchising411
WASHINGTON, April 10—The International Franchise Association (IFA) today applauded the Iowa legislature for passing HF 327, legislation that would effectively codify the traditional joint employer standard for purposes of state law.
“IFA seeks to make clear that local franchise owners are responsible for running the businesses that they have started. They control the terms of employment, compensation, and schedules of their employees, not the national brand company,” said IFA President & CEO Robert Cresanti. “The action taken by Iowa today draws a line in the sand, telling the federal government that the franchise model works and provides tremendous economic benefits for the citizens of this state.”
Specifically, the legislation establishes that an employee of a franchisee is not an employee of the franchisor. Furthermore, the measure outlines that it is the franchisee owner who is responsible for the employment relationship including hiring, firing, discipline, supervision, and direction of the employee. The franchisee and franchisor are considered separate entities and therefore not joint employers.
While the state legislation does not supersede federal labor law, it does provide clarity to state law and for state agencies when they are presented with joint employment claims.
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.