Send a Message to Congress (Now!) To Overturn the NLRB's New Joint Employer Rule
On Thursday, October 26, the National Labor Relations Board (NLRB) issued its final rule expanding joint employment between franchisors and franchisees. The rule will allow franchisors and franchisees to be deemed as joint employers based on a new, vague definition of “indirect control.” If allowed to take effect, this rule will reduce the independence of franchise business owners, diminish franchisees’ equity in their businesses, and force franchisors to offer less support to the franchisees in their systems.
Put simply, this new rule creates significant ambiguity in the franchise relationship and benefits only labor unions, who are seeking to expand the scope of who is liable for collective bargaining obligations.
Franchised businesses provide endless opportunity for individuals in communities across the country, yet this dangerous new NLRB policy stands poised to damage franchising and the unique relationship between franchisors and franchisees.
New research from Oxford Economics shows franchisees’ concerns with the new standard. The survey shows that the rule is expected to increase uncertainty among franchisees; increase costs for franchisees, their franchisors, and consumers; and decrease access to business ownership through franchising.
Now that the rule is published, Congress has a choice to make: allow the new NLRB joint employer rule to stand, or step in and preserve the franchise business model for generations to come.
Fortunately, U.S. Senators Bill Cassidy (R-LA) and Joe Manchin (D-WV) have already announced that they will introduce a Congressional Review Act (CRA) resolution to overturn the joint employer rule. This bipartisan measure needs 51 votes in the Senate to pass.
I’m writing to ask for your immediate help. This is your opportunity to join thousands of Franchise Action Network (FAN) voices and tell your members of Congress to support the CRA and halt this damaging rule. Together, we can preserve the franchise business model and all the good it has created for so many.
Stay tuned for more information and resources in the coming days, including an all-member briefing to provide additional detail on the rule, its impacts, and the next steps to protect your business. As always, if you have any questions, please don’t hesitate to reach out to email@example.com.
President & CEO, International Franchise Association
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