Michael Layman Vice President, Regulatory Affairs International Franchise Association FBN Day Program, Denver, CO July 21, 2015

Transcription

1 Michael Layman Vice President, Regulatory Affairs International Franchise Association FBN Day Program, Denver, CO July 21, 2015

2 Threats to franchise business model: Joint employer regulation Franchise relationship legislation Discriminatory minimum wage legislation Agenda Other terribly annoying issues: Proposed overtime rules Misclassification guidance

3 IHS Economics 2015 Report

4 IHS Economics 2015 Report

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6 SEIU vs. Franchise businesses For over a year, the SEIU has run a coordinated organizing campaign at the local, state, and federal levels against franchise businesses The SEIU wants to re-write franchise laws and existing contracts and undermine the business model to increase their membership and revenue

7 IFA Priority Issues

8 Joint Employer Regulation

9 Joint Employer Developments McDonald s case On July 29, 2014, NLRB General Counsel announced his office intends to name a parent franchisor as a respondent in cases involving alleged unfair labor practices committed by franchisees CNN decision (Sept. 2014) NLRB rejected principle of 30-year-long joint employer standard, that in order to be a joint employer, putative employer must have direct and immediate control Browning-Ferris case In May 2014, Board called for briefs to reconsider its 30-year-old direct and immediate control test for finding joint employment

10 How Joint Employer Standard May Change in Browning-Ferris BEFORE Current Joint Employer Standard AFTER General Counsel s (Proposed) Joint Employer Standard Businesses are joint employers only when they share direct and immediate control over matters governing the essential terms and conditions of employment. Businesses would be joint employers whenever one exercises direct, indirect or potential control over the other. Focus would be on industrial realities that make the controlling party necessary to meaningful collective bargaining.

11 Industries affected by Joint Employer Franchises Construction Staffing agencies Employee leasing companies Vendors Suppliers Any employer that contracts with another company to get services from that subcontractor s employees

12 Join the CSLB at:

13 Negative Joint Employer Bills in States Connecticut HB 6791/SB 1044 Dead for this year (Bills targeted big box and franchise businesses for higher minimum wage)

14 Positive Joint Employer Bills Tennessee SB 475 Enacted Louisiana HB 464 Enacted Texas SB 652 Enacted Colorado next year?

15 Franchise Relationship Legislation

16 Franchise Relationship Legislation Developing effort at federal, state and municipal levels to re-write existing franchise contracts Inserts government into private contractual relationships Threatens the value of franchises and the consistency of franchise brands

17 Franchise Relationship Legislation California AB 525 Still being considered Another franchise relationship bill, SB 610, was vetoed by the Governor last year after an extensive IFA grassroots campaign

18 Franchise Relationship Legislation Massachusetts Pennsylvania Hawaii Puerto Rico (Maine and New Hampshire bills were not reintroduced in 2015)

19 Discriminatory Minimum Wage Legislation

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21 Minimum Wage & Fight for 15 Seattle minimum wage ordinance and IFA lawsuit Copy-cat legislation around country Funded by SEIU, coordinated with legal strategy and legally ambiguous worker centers Movement includes: Days of Action protests Union front organizations Corporate campaigns

22 Department of Labor proposed overtime rule

23 IFA s Franchise Labor & Workforce Hub A one-stop resource for franchise business owners looking to learn more about current labor and workforce challenges Click on News and Issues for last week s overtime webinar with Tammy McCutchen

24 Other issues to know about Federal minimum wage legislation Federal franchise relationship legislation NLRB Ambush union election rule NLRB Micro-unions Department of Labor Misclassification guidance

25 Franchise Action Network Join at Lobby on behalf of your business everyday Host an event at your business with a Member of Congress

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27 Contact me anytime Michael Layman International Franchise Association Vice President, Regulatory Affairs IFA's Franchise Action Network Annual Meeting September 29-30, 2015, Washington, D.C.