Franchising and subcontracting are integral parts of America’s economic success. According to the International Franchise Association franchises will add 8.2 million jobs to the economy and $757.2 billion in economic output, in 2018.
Unfortunately, these businesses are still contending with one of the worst antibusiness policies produced by the previous presidential administration. In 2015, the National Labor Relations Board muddied the definition of “employer,” holding millions of businesses responsible for the management and treatment of workers they didn’t even employ or manage. The agency ruled that businesses with “indirect” or even “potential” control of the same employees can be found to be so-called joint employers.
The ruling caused a ripple effect of uncertainty for businesses. It pulled the rug out from under franchisees and subcontractors in controlling their own local small businesses. It also discouraged prospective franchisees from opening up shop, as well as those with existing businesses from expanding.
Tell your senators: It’s time to stand up for local businesses by voting for the Save Local Business Act (H.R. 3441), which would restore a commonsense joint employer standard.