The fight against the proposed expanded joint employer rule led by the International Franchise Association (IFA) has come to a victorious conclusion. The National Labor Relations Board dropped its appeal of an earlier ruling in favor of the coalition, effectively putting an end to the controversial rule.
According to Matt Haller, President and CEO of IFA, this decision is a significant win for small businesses in the franchise industry and communities across the nation. He emphasized that the franchise business model is crucial for American workers to achieve upward mobility and emphasizes the importance of small business ownership.
In 2023, the NLRB attempted to expand the Joint Employer Rule, causing concern within the franchise industry. Under the proposed rule, companies could be considered joint employers more easily, leading to potential legal liabilities. This recent development marks the end of this attempt to expand the rule, but the future remains uncertain.
Attorney Jim Paretti from Littler Mendelson, a labor relations law firm, highlighted that the NLRB still has options moving forward. While the current threat may have been averted, vigilance is necessary to protect the interests of franchise businesses and their employees.
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