IFA On Joint Employer Delay: Congress Must Act To Prevent Unworkable Proposal From Ever Taking Effect
WASHINGTON –Today, Matt Haller, President and CEO of the International Franchisers Association (IFA), issued the following statement regarding the National Labor Relations Board (NLRB) delaying the effective date of its new joint employer rule until February 26, 2024:
“Delaying implementation of this rule is an acknowledgement of what we have been saying all along: this proposal is unworkable and congressional action to kill it once and for all remains paramount. We are grateful for the bipartisan support the Congressional Review Act (CRA) has received so far and will continue educating lawmakers on the importance of joining our growing coalition of supporters. New regulations that will cost jobs, shutter small businesses and increase litigation on a thriving business model are not the solutions our country needs.”
Following the October 26 announcement by the NLRB, a bipartisan and bicameral group of lawmakers introduced a joint CRA resolution overturning the new joint employer rule. The rule was previously scheduled to take effect December 26, 2023. The CRA is co-sponsored by 23 members of the U.S. Senate, and 38 members of the U.S. House of Representatives.
The new joint employer rule expands on a previous joint employer rule that destroyed 376,000 jobs, cost small businesses $33.3 billion, and led to a 93% spike in lawsuits in the franchise sector alone.
Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) 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 approximately 790,492 franchise establishments that support nearly 8.4 million direct jobs, $825.4 billion of economic output for the U.S. economy, and almost 3 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.