Posts tagged Franchise
Why Congress Should Follow Tennessee’s Lead on Labor Reform
April 20, 2023 // The Employee Rights Act, introduced by Sen. Tim Scott (R-S.C.) and Rep. Rick Allen (R-Ga.), envisions secret-ballot elections becoming the norm for almost all private-sector employees, in all states. It also secures workers’ privacy, giving them a choice about what information is shared with a union. For example, instead of workers having all their personal information—their cell phone number, their home address, and personal email—handed over to the union, workers can select a single piece of information to share. The legislation also modernizes outdated labor laws. With more than one-third of Americans now identifying as independent workers, this reform is sorely needed. The Employee Rights Act protects entrepreneurs by standardizing the federal definition of independent workers. This safeguards workers from being treated as employees for the purpose of unionization.
Biden’s ‘nightmare’ Labor nominee under fire from small businesses, contract workers
April 5, 2023 // "As the chief enforcer of AB 5, Julie Su was a nightmare for freelancers and small businesses in California. She has no business being Labor Secretary after her track of failure," said Freelancers Against AB 5 founder Karen Anderson. Wes Snyder, the owner of a FASTSIGNS franchise in Arizona, criticized Su’s stance on franchise liability. "This business model gives anyone the opportunity to experience the transformative power of entrepreneurship while strengthening their local communities," he said. "Julie Su wants to rob us of this opportunity – she will turn the American dream into the American nightmare."
How Utah Is Protecting Workers Without the Baggage of Unions | Opinion
March 28, 2023 // Utah's Portable Benefit Plan is a national breakthrough for independent contractors, establishing a legal pathway for entities to offer fully voluntary benefits plans that self-employed workers can open on their own. Unlike employer-sponsored health plans for traditional employees that are tied to jobs, Utah's self-employed workers instead will soon have access to a variety of new benefits plans that are entirely their own and entirely portable for their evolving careers. The possibilities of products that may be established are broad, including the potential for health insurance, unemployment insurance, and disability insurance related products. There is even a pre-existing financial tool known as a "Utah medical care savings account" that self-employed Utahns may conveniently use to pay for their portable health insurance benefits and medical expenses. Many opponents of independent contracting argue that such workers are exploited and deserve the health care and other benefits that many traditional employees receive.
The PRO Act helps forced unionization while the ERA helps workers
March 9, 2023 //
NLRB puts union bull’s-eye on the franchise industry
January 2, 2023 // The National Labor Relations Board has proposed a dramatic overhaul of the franchise business model by reclassifying workers at restaurant or hotel chains as employees of the parent company, a move that would make it easier to unionize across the entire brand. Opponents warn that the change will devastate an industry employing 8.2 million people and contributing roughly 7% to the nation’s overall economic output. “This is going to hurt a lot of people, from someone coming out of the corporate environment looking to be an independent business owner to someone looking to start their career with an entry-level job to consumers who will have to pay $15 for a hamburger,” said Frank Caperino, who teaches franchise management at San Diego State University and owns multiple franchises.
Commentary: New California Law Will Cripple Its $20 Billion Fast-Food Industry
December 16, 2022 // California’s new law is in essence legislating away thousands of future jobs by preventing workers and employers from reaching employment agreements on their own terms. The law places failed union leadership above the interests of individuals who wish to work and business owners who wish to hire. And don’t be surprised if similar councils are formed in the future to organize workers in other industries. Unions are desperate for new recruits. After decades of losses, it appears that the only way that they can grow is by having legislators take away the freedoms that are crucial for individual prosperity and economic growth.
I4AW submits regulatory comments; shows support for worker freedom and flexibility
December 13, 2022 // The Department of Labor (DOL) and the National Labor Relations Board (NLRB) are doubling down on overreaching tactics that could have job-killing consequences for independent workers and franchise businesses.
What Home-Based Care Agencies Should Know About The Independent Contractor Proposed Rul
November 29, 2022 // “In other words, just the ability to manage somebody that is not exercised in any way can be considered employment. I think that takes it a step too far. The question should really be about what is actually occurring, not what is possible.”
A fearful October for entrepreneurs
October 29, 2022 // The National Labor Relations Board (NLRB) is coming after the almost 800,000 franchise owners who employ 8.5 million people. The board’s proposed “Joint Employer” rule, would have catastrophic effects on the franchise industry and restrict the opportunities of small business owners who are franchisees. The NLRB rule would force franchisors — distant corporate headquarters — to come between franchisees and their employees. It would do so by making both the headquarters and the small business employers of workers at the franchisees’ store. Franchisors would become jointly liable for employment issues involving workers or contractors who are employed or “directly controlled” (as the current standard notes) by a small business.
Conservative group launches effort to fight Biden administration workplace rules
October 28, 2022 // If implemented, the new rules could restrict independent contracting, which would force some freelancers to reclassify as employees, and broaden the definition of joint employment, making it harder to own and operate franchise businesses. Because these rules are being proposed by executive branch agencies, they do not go through rounds of debate and votes in Congress. However, under the 1946 Administrative Procedures Act, they must go through a public comment period to receive feedback before being implemented. This is where the group, Heritage Action for America, is trying to make an impact, soliciting comments from the public via a new website.