The IFA (International Franchise Association), is proceeding to challenge Seattle's $15 wage in the U.S. Supreme Court, as reported by
Restaurant Business Online. The IFA is asking the court to review their complaints about how franchisees are treated under the new law. They argue that franchisees are small, independent business owners, while regulators (including the lower courts) have disagreed.
Seattle's regulations, passed in 2014, dictate that businesses with more than 500 employees need to pay workers at least $15 an hour by 2018, while smaller businesses have a bit more time, and need to reach that goal by 2021. Under these laws, franchisees are grouped with their franchisors, and are not treated as small, independent businesses. The IFA CEO Robert Cresanti has said that they do not take issue with the fact that Seattle has raised wages, but rather
“Our appeal to the Supreme Court will be focused solely on the discriminatory treatment of franchisees under Seattle’s wage law and the motivation to discriminate against interstate commerce.”
What do you think, should franchisees be treated as independent businesses, or do they already have an advantage by being connected to such a large restaurant network? Let us know what you think via Facebook, Google+ and Twitter.
Source:
Restaurant Business Online
Image Credit: Denis Bocquet via Flickr
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