IFA Launches Multi-Pronged Campaign Against NLRB's Joint Employer Rule

The International Franchise Association (IFA) has announced a comprehensive strategy to combat the National Labor Relations Board's (NLRB) expansive new joint employer rule, which threatens to fundamentally alter the franchise business model. In a letter, the IFA’s President & CEO Matt Haller said, “Like all challenges facing the franchise business model in recent years, the franchise model will get through this latest challenge and be stronger for it.” The letter outlined the IFA's plan that includes five strategic elements: litigation, lobbying, coalition building, grassroots mobilization, and member education.

The IFA, joined by a dozen other trade groups, has filed suit challenging the NLRB rule in federal court in Texas. The lawsuit argues that the rule exceeds the Board's authority and violates the Administrative Procedure Act (APA), and requests the court to consider summary judgment in the case.

Members of Congress have introduced bipartisan legislation to overturn the joint employer rule. The legislation is a joint resolution of disapproval under the Congressional Review Act (CRA) that would nullify the NLRB rule. The bill has been introduced by U.S. Sens. Bill Cassidy (R-LA) and Joe Manchin (D-WV) and U.S. Representatives John James (R-MI) and Virginia Foxx (R-NC). The IFA is urging its members to contact their Congressional representatives and ask them to support the bill.

The IFA has led a coalition of 60 national organizations in sending a letter to Congress urging repeal of the NLRB rule. The Coalition to Save Local Businesses demonstrates the impact of the joint employer issue goes far beyond franchising. These 60 groups are allied with the IFA to overturn the NLRB's ruling.

The IFA has garnered significant press coverage for its leadership on the joint employer issue. The IFA is actively looking for more engagement in several key Senate states and House districts, including Arizona, California, Maine, Montana, New York, and North Carolina.

The IFA is providing members with resources and support to help them understand the rule’s impact from both a practical and a legal perspective. The organization is hosting a member briefing on the rule on Thursday, November 16, that will feature guest speakers: Jerry Akers, Franchisee of Great Clips and The Joint Chiropractic (Franchisee Forum Chair); Sam Ballas, President & CEO, East Coast Wings & Grill (Franchisor Forum Chair); and Amy Cheng, Partner, Cheng Cohen LLC.

The IFA remains committed to protecting the franchise business model and ensuring that it can continue to create jobs and economic opportunity for Americans.