Franchising is the backbone of the hotel industry, with 36,000 franchised hotels employing nearly 2.8 million workers nationwide. Across all industries, franchising generates close to $900 billion in economic output and supports more than 8 million jobs. Yet for the past decade, shifting interpretations of the “joint employer” standard have created uncertainty and put small business owners at risk.
Our Position
AHLA supports H.R. 5267, the American Franchise Act (AFA). The American Franchise Act amends the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA) which, since 2015, has left franchisors and franchisees in a perpetual state of uncertainty. AFA brings much needed clarity for the protection of workers and preservation of small business owner autonomy by establishing a joint employer standard that will allow franchising to continue to thrive.
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