Fix the Joint Employer Standard and Protect Small Businesses Franchises
Legal Whiplash is Crippling Local Franchise Owners
The joint employer standard is the heart of the franchise model. This regulation defines when two businesses share responsibility for employees. It has flipped four times in the last 10 years, fundamentally changing with each new administration in Washington.
The first change to the joint employer standard in 2015 cost an estimated 376,000 jobs. The resulting uncertainty has had a range of crushing effects on the franchise business model, including:
· Blocking new entrepreneurs from building a business of their own.
· Reducing safety measures, training, and customer service.
· Creating confusion and inconsistency for employees.
· Weakening brand consistency and growth.
franchising powers the american dream
Franchising is one of the most effective paths for Americans to own a small business and achieve the American Dream, especially for women, veterans, and communities of color.
Today more than 831,000 franchise businesses operate nationwide, employing 8.8 million Americans, and creating opportunities in nearly every zip code.
From well-known national brands to local favorites, franchising helps everyday Americans own a business with the support of a proven model.
But this pathway to prosperity has been put at serious risk. Now Congress has a chance to fix it by passing the American Franchise Act.
PASS THE AMERICAN FRANCHISE ACT. PROTECT THE AMERICAN DREAM.
The American Franchise Act: Pro-Business, Pro-Worker, Pro-Community
The bill benefits small business owners, workers, suppliers, and the communities they all live and work in. It will:
· Protect local business ownership and their pathway to the American Dream.
· Encourage growth and hiring to bring more local jobs and investment to communities.
· Boost training, service, and employee opportunities.
· Expand franchise ownership in diverse communities to unlock opportunity and drive inclusive economic growth.
· Improve the customer experience across brands Americans know and love.
· Protect the rights of workers to organize if they wish to do so.
Congress: The future of small business depends on you.
The Fix: Pass the American Franchise Act.
Congress can protect local businesses, for good, by passing the American Franchise Act, which sets a clear, stable joint employer standard.
This common-sense legislation will:
· Amend the Fair Labor Standards Act and the National Labor Relations Act to codify a clear, durable joint employer standard.
· Establish that franchisors are only joint employers if they possess and exercise substantial and immediate control over essential terms and conditions of employment.
· Align federal law with longstanding precedent and current NLRB policy, ensuring stability for both workers and business owners.
