On the recordApril 10, 2024
Madam President, the Senate will soon vote on the Congressional Review Act resolution of disapproval, hoping to overturn the Biden administration's new joint employer rule. This policy threatens the viability of the American franchise model in favor of coerced unionization. There are 800,000 franchise businesses operating in our communities. They employ over 9 million Americans. The franchise model has particularly empowered underrepresented groups in the business community, such as women and people of color. This allows them to become a successful business owner, to live the American dream, and to create an opportunity for their own family and for their employees. President Biden's new joint employer rule threatens this critical business model. It forces legal liability onto franchisers for the labor decisions of individual franchise owners despite the franchiser having no operational authority over the business's employees. Saddling franchisers with liability for thousands of franchise owners that operate as small businesses is a sure way to destroy the system of franchising. According to the International Franchise Association, when the Obama administration imposed a similar policy, small businesses lost $33 billion per year collectively due to increased liability costs. The Biden administration's policy has strong opposition from Republicans and Democrats.…
Source
govinfo.gov




