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January 14, 2025

U.S. House Cancels Joint Employer Vote

This week, the U.S. House planned to vote on the Save Local Business Act (SLBA), the broad-based joint employer bill to clarify labor law rules for all contractors, but decided to cancel the vote due to a lack of support for the measure.

The cancelled SLBA vote reflects the changing labor politics during the Trump Era, and those dynamics are why IFA this year has developed and pushed the narrower American Franchise Act (AFA) (H.R. 5267, S. 2535), which would provide clear joint employment rules only for the franchisor-franchisee relationship.

Consistent with these changing labor dynamics, one of the House’s most pro-labor Republicans, Congressman Nick Lalota (R-NY), sent this letter to House Education and the Workforce Committee Chairman Tim Walberg (R-MI), asking him to advance the AFA instead of the SLBA as the primary House solution to the joint employer issue.

IFA Supports Nebraska Bill

In Nebraska, state Senator Loren Lippincott has introduced an IFA-supported bill to protect the franchise model, LB 941, which would establish a clear standard that a franchisor is not an employer unless it exercises direct and immediate control over essential terms of employment. 

What's Next: LB 941 has been referred to the Business and Labor Committee, where it will receive a hearing later this session. 

The Big Picture: The bill also has support from the Nebraska Retail Federation and is expected to pick up additional allies in the coming weeks, and IFA hopes to push it to enactment this session like the Missouri bill referenced above.

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Franchisees Showcase Community Value

In a new video as part of IFA’s Franchise Means Local campaign, Maine Dunkin’ franchisee Colleen Bailey shares how her family’s local franchise businesses are part of the fabric of their community.

By the Numbers: According to IFA’s new Value of Franchising report, 85% of franchisees live and work where their businesses are located, and 64% of franchisees say that their franchise was the first business they owned.

Dig Deeper: Check out the full findings from the report, which provides data on how franchises create stronger jobs, business ownership opportunities, and community engagement. You can also read more about the significance of the findings from an interview with IFA’s Michael Layman in the Franchise Times.