The International Franchise Association (IFA) has praised the U.S. Department of Labor (DOL) for its release of the Joint Employer Rule under the Fair Labor Standards Act.
Keep up to date with the latest Global Franchise News sent straight to your inbox. Sign up here.
By instituting a four-part test to determine employer status, the DOL rule can clarify joint-employer status, employer liability, and the roles and responsibilities of each party in a business relationship.
Robert Cresanti, IFA’s President and CEO, said: “On behalf of IFA, I applaud the DOL for today’s decision to return to a simple, clear, and thoughtful joint employer standard.
“This resolution provides much-needed clarity for the 733,000 franchise establishments across America, and returns to the traditional standard of business that has fundamentally supported and encouraged franchise entrepreneurship for decades.
“I am very pleased with the bipartisan support this ruling received from Congress and look forward to removing the cloud of uncertainty over future franchise operations.”
In its statement, the IFA cites that economic studies show that, under a similar law, the expanded joint employer standard has cost the American economy $33.3 billion per year, led to 376,000 fewer job opportunities, and resulted in a 93 per cent increase in lawsuits against franchise businesses.
“This DOL rule removes the same barriers that led to those costs – that means that franchise businesses can better plan, better hire, better share their knowledge, and better grow,” said Cresanti.
IMAGE: SUDONG KIM / Shutterstock
Bojangles, Inc. announced it has added Gary Vaynerchuk, a serial entrepreneur and the CEO and co-founder of VaynerMedia, to its board of directors.24 Jan 2020 | Read Article >
The deal will see 7-Eleven, Inc. buy 100 7-Eleven-branded locations in central Oklahoma that have been operating independently for 67 years.20 Jan 2020 | Read Article >
For further information on the Tiger Bills franchise please submit your details below.