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Judi Lynn

(160,587 posts) Tue Mar 10, 2015, 03:23 PM Mar 2015

Minimum Wage Boost In Seattle Faces Legal Challenge From Franchise Lobby

Source: Reuters

Minimum Wage Boost In Seattle Faces Legal Challenge From Franchise Lobby
By Cole Stangler @colestangler on March 10 2015 3:02 PM EDT

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Franchises say they should be classified as small businesses and avoid Seattle's more aggressive wage hike for large employers. In this photo, labor
activists at a city council meeting last June. Reuters
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Next month, the nation’s biggest minimum wage hike takes effect. But its impact could be dulled if the franchise lobby has its way in court. Under Seattle’s two-tiered, multi-year wage boost, small businesses will start paying at least $10 an hour by April 1, and $15 by 2021. Companies with more than 500 employees--a category that includes fast food franchises like McDonald’s and Burger King--have a tighter window. They’re supposed to pony up $11 an hour next month, reaching $15 by 2018.

But the nation’s top franchise lobby, the International Franchise Association (IFA), has cried foul. It says the city ordinance discriminates against its members by lumping them in with other big businesses. On Tuesday morning, lawyers for the group will make their case in federal court, asking for an injunction.

“We’re not asking for something huge,” says Matt Haller, a spokesman for the International Franchise Association. “We’re asking for equal treatment.”

The lawsuit asks that franchisees be treated like other small businesses and be granted the more generous time frame to comply with the law. The franchise model is especially common at hotels and in the low-wage fast-food sector, a major source of job growth since the recession. Even though franchisors typically extract fees from franchisees in exchange for goods and services, the lobby maintains that franchisees are independent business owners.

Read more: http://www.ibtimes.com/minimum-wage-boost-seattle-faces-legal-challenge-franchise-lobby-1842390

5 replies

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Highlight:

Minimum Wage Boost In Seattle Faces Legal Challenge From Franchise Lobby (Original Post) Judi Lynn Mar 2015 OP

What a load of BS KamaAina Mar 2015 #1

Simple soultion - STOP EATING AT FAST FOOD RESTAURANTS LynneSin Mar 2015 #2

“We’re asking for equal treatment.” I actually agree with this cstanleytech Mar 2015 #3

Because that makes sense, instead of giving workers a raise sooner... lilithsrevenge12 Mar 2015 #4

Oh, lets do! We can spend our funds any way we damned want! That's the fun of owning stuff. Judi Lynn Mar 2015 #5

KamaAina

(78,249 posts)

1. What a load of BS

Reply to Judi Lynn (Original post)

Tue Mar 10, 2015, 03:27 PM

Mar 2015

http://www.huffingtonpost.com/2014/07/29/mcdonalds-nlrb-joint-employer-ruling_n_5630902.html

McDonald's is coming under intensifying pressure for labor practices at its U.S. restaurants.

The National Labor Relations Board said Tuesday that the world's biggest hamburger chain could be named as a joint employer in several complaints regarding worker rights at franchise-owned restaurants. The decision is pivotal because it could expose McDonald's Corp. to liability for management practices in those locations.

It also comes as protests for higher pay have captured national attention, with labor groups calling for pay of $15 an hour and the right to unionize. Organizers had been pushing to get McDonald's named as a joint employer at franchised restaurants, a move intended to give them a centralized and powerful target.

In the U.S., the vast majority of McDonald's more than 14,000 restaurants are owned and operated by franchisees. The same is true for many other fast-food chains, including Burger King and Yum Brands, which owns Taco Bell, KFC and Pizza hut. As such, the companies have sought to distance themselves from the pay protests by saying they don't determine wages at its franchised locations.

LynneSin

(95,337 posts)

2. Simple soultion - STOP EATING AT FAST FOOD RESTAURANTS

Reply to Judi Lynn (Original post)

Tue Mar 10, 2015, 03:33 PM

Mar 2015

Stop supporting cheap Franchise owners who refuse to pay their employees a decent salary. Then these owners will realize that not paying a decent wage to their employees is going to cost them way more than just paying the $15/hour.

And time over time it's been proven again - when regular folks make more money then everyone saves. These folks rely less on government handouts (so less of our taxdollars being spent) and will also spend more of their money back into the economy. Rich people they just take our tax dollars in all those great tax cuts and tuck the money away into some off-shore account then brag about how rich they are - no one benefits!