The International Franchise Association and over 60 other industry groups have begun lobbying efforts against a forthcoming rule change concerning joint employer liability. This rule is slated to take effect next month and it is causing major concerns among businesses, particularly within sectors such as convenience stores, grocery retail, and car rental services, among others.
Under the new rule, corporate brands could be held responsible for labor violations alongside their franchises. The rule is essentially expanding the shared corporate liability for workers, a move that has seen business interests unite against it. Notably, the US Chamber of Commerce and an array of well-known brands have thrown their weight behind the resistance against the change.
Companies such as FedEx Corp., Home Depot, and Yum! Brands have been mentioned in the lobby, alongside organizations like the National Retail Federation and the National Association of Manufacturers.
On the other hand, unions have shown support for a return to the Obama-era policy on shared liability. This complex interplay of business, legal, and labor interests promises to make the forthcoming rule change a significant focus of debate in the realms of labor law and workers’ rights, particularly as the exact repercussions for franchises and their corporate brands are yet to be fully understood.
For further insight into this issue, read the original article on Bloomberg Government.