Save Local Business Act Will Clarify the Joint Employer Standard

When the Multi-Unit Franchising Conference kicked off in Las Vegas last month, IFA released a statement applauding the introduction of the Save Local Business Act, legislation that will clarify the joint employer standard and protect the independence of local franchise businesses.

“More than any other policy, franchise businesses need the certainty of the Save Local Business Act,” said Michael Layman, IFA senior vice president of government relations and public affairs. “IFA applauds Sen. Marshall and Rep. Comer for reintroducing the Save Local Business Act, a common-sense bill that, if enacted, will indeed save hundreds of thousands of franchise small businesses from regulatory overreach. As the misguided National Labor Relations Board prepares to finalize an unnecessary and harmful joint employer standard later this year, it is critical that Congress pass the Save Local Business Act to provide franchise brands and owners with a reasonable, clear, and consistent standard of joint employer so they can continue growing and thriving.”

IFA led a coalition of 39 business organizations on a letter in support of the legislation. The group highlights that the legislation stands in sharp contrast to the Protecting the Right to Organize (PRO) Act, which would codify a harmful joint employer standard, ultimately ending the franchise business model as it exists today. IFA estimates that the previous expanded joint employer standard cost franchised businesses $33.3 billion per year, resulted in 376,000 lost job opportunities, and led to 93% more lawsuits.