Posts tagged International Franchise Association
Commentary: The 2025 Battle of Trenton; Video
June 25, 2025 // The opposition to independent contractors was frustratingly predictable. Most of it, as usual, came from unions—including the AFL-CIO, Teamsters and IBEW. Others who testified against us were a representative of the union-affiliated National Employment Law Project (you may recall us crushing them in Congress last month), a couple of union-side lawyers, and a guy from the Workplace Justice Lab at Rutgers University, whose stated mission includes building unions.
CDW Leads Letter Supporting Crystal Carey Nomination
April 16, 2025 // The Coalition for a Democratic Workplace (CDW) and the 20 undersigned organizations urge your support for the nomination of Crystal Carey to serve as the General Counsel of the National Labor Relations Board (NLRB). Carey is well-qualified to serve and will be an asset to the Board in this role. We urge your support for her nomination.
Biden vetoes bid to repeal US labor board rule on contract, franchise workers
May 3, 2024 // Matthew Haller, president and CEO of the International Franchise Association, said the rule would cause particular harm to underrepresented groups including minorities, women and veterans who have often turned to franchising as a path to business ownership. “President Biden claims to be a champion for small businesses, but today he turned his back on franchising," Haller said in a statement. The rule was set to take effect in February, but was delayed and ultimately blocked by U.S. District Judge J. Campbell Barker in Tyler, Texas, in a lawsuit by the U.S. Chamber of Commerce and other business groups.
Biden vows veto if Congress moves to repeal NLRB rule on contract, franchise workers
January 10, 2024 // The rule replaced a Trump-era regulation requiring companies to have "direct and immediate" control over workers in order to be considered joint employers, which was favored by business groups. "Reversing this rulemaking will prevent workers from exercising their right to bargain for higher wages, better benefits, and safer working conditions," the OMB said on Monday. "Too often, companies deny workers this right by hiding behind subcontractors, staffing agencies, and temporary agencies." The House Committee on Education and the Workforce approved the resolution for a vote last month. The federal Congressional Review Act allows Congress to repeal agency rules within 60 days of their adoption. The resolution only needs the support of a majority in the House and Senate to pass, but would require a two-thirds majority to overcome a Biden veto.
U.S. labor board delays new unionization rule after business groups sue
November 20, 2023 // The U.S. Chamber of Commerce and other business groups — including the American Hotel and Lodging Association, the International Franchise Association and the National Retail Federation — sued the NLRB in federal court in Texas last week to block the rule. They say the rule upends years of precedent and could make companies liable for workers they don’t employ at workplaces they don’t own. But the NLRB says the current rule makes it too easy for companies to avoid their legal responsibility to bargain with workers.
New federal rule could allow millions of workers to more easily unionize at big companies
November 16, 2023 // The rule only applies to labor relations. The Department of Labor sets its own joint employment standards for issues like meeting minimum wage requirements. Still, the new rule could have a major impact. Local franchise owners employ more than 8 million people in the U.S., according to the International Franchise Association. Millions more work for subcontractors or temporary agencies.
Op-Ed: Biden’s joint-employer rule is bad for workers
November 9, 2023 // Included in the Employee Rights Act are the commonsense provisions of the Save Local Business Act, which would provide much-needed clarity in determining joint-employer status and prevent franchise owners from becoming corporate middle managers. More specifically, the bills amend the National Labor Relations Act and the Fair Labor Standards Act to clarify that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers. It rolls back a convoluted joint-employer scheme that threatens job creation and undermines the American dream, and it restores a commonsense definition of employer to provide certainty and stability for workers and job creators. Simply put, the Employee Rights Act seeks to update our nation’s labor policies to match the needs of the 21st-century worker and workforce.
This New Labor Rule Could Be Trouble for McDonald’s
October 5, 2023 // McDonald’s and other franchise companies have made it clear they believe the stakes are high. The “reality is that our business model is under attack,” CEO Chris Kempczinski said of possible joint-employer regulations in a speech at a franchising industry conference in Las Vegas earlier this year, in remarks he also published on LinkedIn. Changes by the NLRB, he said, would transform franchisees “from independent small-business owners to employees of the parent brands.” Heightened joint-employer liability could hurt the franchise model in two main ways, according to the International Franchise Association. One possibility, along the lines of what Kempczinski described, is that a franchisor would exert more control over the franchisees. That undercuts one of franchisors’ big selling points to potential franchisees—that they’re offering a path to running their own business, with all of the freedoms that provides. It could also add compliance costs, and potentially, legal and liability expenses. Those increased costs are also a frequent worry for franchisees, says restaurant consultant John Gordon, principal at Pacific Management Consulting Group. Franchisees typically pay franchisors a percentage of their sales, and their profit comes after those fees and their operating expenses. Franchisees are “justifiably afraid of the franchisor passing costs onto them that weren’t part of the franchise agreement,” he says, and wary of joint-employer liability for that reason.
Gavin Newsom signs law raising minimum wage for California fast food workers. Here’s how much
September 28, 2023 // Future increases will be determined by the new nine-member council consisting of two representatives of the industry, two franchisees or restaurant owners, two employees, two advocates for employees and one neutral member of the public, who will serve as chair. It is set to hold its first meeting by March 1. Newsom pushed back against criticism that Californians will pay more for their Starbucks and McDonalds. He cited the The Fight for $15 movement, which raised the minimum wage to $10 per hour in 2016 and and $15 per hour last year.
California’s on the cusp of transforming America’s fast food industry — again
August 16, 2023 // “Because it’s so many stores, and going store to store would be difficult, the path to unionization here is basically through legislation,” said Brandon Dawkins, SEIU 1021 vice president of organizing. “After we get the council together and force the employer to the table, then the unions — we can come in and really sit down and negotiate with the corporations to, number one, create a union and, number two, address issues like safety and wage theft.” A labor council’s purview extends to workplace conditions like predictable scheduling — a longstanding goal for labor — noted California Labor Federation Executive Officer Lorena Gonzalez, a former state lawmaker who carried an earlier version of the bill when she served in the state Assembly. “If you get joint employer liability, it’s more likely McDonald’s would want to talk about a national agreement or strategy because now they’re on the hook for every labor violation,” Gonzalez said. That tactic has angered restaurant operators who have rallied against the legislation. Marisol Sanchez, a second-generation McDonald’s franchise owner, has appeared in advertising opposing the 2023 bill. Sanchez said she believed SEIU was acting on its own political agenda rather than in response to worker demands.