PRESENTED BY:

March 25, 2025

IFA Members Advocate for American Franchise Act

DOL Joint Employer Rule Forthcoming

The U.S. Department of Labor (DOL) sent a new joint employer rulemaking to the Office of Information and Regulatory Affairs (OIRA), signaling that a proposal is in its final stage before public release and the Administration is preparing to again redefine the standard under the Fair Labor Standards Act.

Outlook Ahead: IFA is optimistic this DOL rulemaking will help clarify labor law rules for franchisors and franchisees, as this forthcoming rulemaking follows years of shifting policy: over the past decade, DOL has changed its joint employment standard four times and the National Labor Relations Board has changed its joint employment standard four times.

Why It Matters: While IFA is pleased with the regulatory common sense from the current Administration, the continual shifting of the DOL and NLRB joint employer standards underscore the need for Congress to enact the American Franchise Act to provide legal certainty for franchisors and franchisees.

Vermont Scales Back Franchise Bill

Vermont lawmakers heavily amended H. 733 to remove egregious franchise relationship language in favor of a limited annual census-style business filing requirement. 

Why It Matters: The change avoids creating a franchise registration state and instead requires only minimal identification with the Secretary of State's office. Franchisors simply disclose their status as actively in business in the state, and franchisees disclose the brand under which they operate.

What's Next: The amended bill passed the House and will make its way through the Senate in the coming weeks. IFA will continue to monitor implementation to ensure it remains a narrow, administrative filing. 

ADVERTISEMENT | Advertise with IFA

IFA Urges TSA Funding

IFA, along with a massive coalition in the travel industry, sent a letter demanding Congress end the Department of Homeland Security (DHS) funding stalemate to protect the Transportation Security Administration (TSA) and restore full pay to the TSA workforce to ensure aviation security.

Dig Deeper: DHS has been in a partial shutdown due to a Senate impasse over immigration and voter registration policies. The Senate has now rejected five attempts to fund the department, along with a "carve-out" bill specifically for the TSA.

What’s Next: As Congress continues to debate the issue, the Administration is deploying ICE agents to airports to assist with non-screening duties due to severe TSA staffing shortages.