GF Issue 54

employees that they do not directly control, just by the virtue of entering a standard business-to-business contract. In 2015, the last time the Obama Administration expanded the joint employer rule, the economic consequences were severe. It cost franchises $33.3 billion each year, destroyed 376,000 jobs, and led to 93%more lawsuits. To what extent do you think it could impact the franchise model in a wider sense? The rule is designed to make franchise owners middle managers in their own businesses and liable for collective bargaining obligations. The goal is to increase unionization by forcing businesses to negotiate withworkers who they do not actually employ. Removing autonomy from franchisees creates a confusing environment forworkers andwill make companies who might otherwise be interested in franchising their brands think twice. The additional uncertaintywill compound challenges for an economy still struggling under the weight of inflation and labor shortages. How is the IFA lobbying the NLRB and what amendments to legislation would you like to see? IFA is pulling out all the stops to prevent this damaging rule from taking effect. Alongwith a dozen other trade groups, IFAfiled a lawsuit challenging the NLRB rule in federal court inTexas last November, resulting in the National Labor Relations Board extending the effective date of its ‘joint employer’ rule from December 26 2023 to February26 2024, a delay, the board said, to allow time to resolve legal challenges. The lawsuit took aimat the NLRB for exceeding the scope of its authority andviolating the Administrative Procedure Act (APA) by failing to respond to comments regarding the rule’s harmful economic consequences outlined in IFA comments to the Board, its disregard for the common law, andmore. The new rule also faces opposition in Congress. Legislatively, members of Congress introduced bipartisan legislation to overturn the joint employer rule. Specifically, the legislation is aHouse and Senate joint resolution of disapproval under the Congressional ReviewAct (CRA) thatwould nullify the unworkable NLRB rule. IFAurges all itsmembers to ask their representatives in Congress to support this bill by clicking here to send themamessage. Finally, IFA is building a coalition of champions. An IFA-led business coalition letterwith 60 national organizations sent a letter to Congress urging repeal of the NLRB rule. How are you supporting franchises at this time and how can they get involved? The franchisemodel will get through this and be stronger for it. By rowing together in support of the greater good and our shared commitment to one another, with franchisees and franchisorsworking togetherwith their supplier partners to help support the IFA’smission to protect, enhance and promote franchising, we’ll beat back this latest challenge to our businessmodel and continue to grow in business for ourselves, but not by ourselves. GLOBAL FRANCHISE.COM 11