---
title: "International Franchise Association praises Department of Labor’s joint employer ruling"
url: https://burnaze.com/article/c97f5548-5e4a-42e3-84d3-38f6396c6af8
source: "Global Franchise"
original_url: https://www.global-franchise.com/news/international-franchise-association-praises-department-of-labors-joint-empl
author: "James Fell"
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Regulation & legal","Operations"]
published: 2020-01-14T09:20:00.000Z
modified: 2026-10-31T16:40:26.824Z
image: https://images.unsplash.com/photo-1450101499163-c8848c66ca85?w=1600&q=80&auto=format&fit=crop
---

# International Franchise Association praises Department of Labor’s joint employer ruling

**TL;DR:** The International Franchise Association (IFA) praises the U.S. Department of Labor's (DOL) Joint Employer Rule under the Fair Labor Standards Act, which clarifies joint-employer status and employer liability. The rule is expected to provide much-needed clarity for the 733,000 franchise establishments across America.

*By James Fell, originally published in Global Franchise on 2020-01-14. [Read the original](https://www.global-franchise.com/news/international-franchise-association-praises-department-of-labors-joint-empl).*

## Story

**The International Franchise Association (IFA) has praised the U.S. Department of Labor (DOL) for its release of the Joint Employer Rule under the Fair Labor Standards Act.**

By instituting a four-part test to determine employer status, the DOL rule can clarify joint-employer status, employer liability, and the roles and responsibilities of each party in a business relationship.

Robert Cresanti, IFA’s President and CEO, said: “On behalf of IFA, I applaud the DOL for today’s decision to return to a simple, clear, and thoughtful joint employer standard.

“This resolution provides much-needed clarity for the 733,000 franchise establishments across America, and returns to the traditional standard of business that has fundamentally supported and encouraged franchise entrepreneurship for decades.

“I am very pleased with the bipartisan support this ruling received from Congress and look forward to removing the cloud of uncertainty over future franchise operations.”

In its statement, the IFA cites that economic studies show that, under a similar law, the expanded joint employer standard has cost the American economy $33.3 billion per year, led to 376,000 fewer job opportunities, and resulted in a 93 per cent increase in lawsuits against franchise businesses.

“This DOL rule removes the same barriers that led to those costs – that means that franchise businesses can better plan, better hire, better share their knowledge, and better grow,” said Cresanti.

## Entities

- Franchise Industry (sector)
- Global Franchise (publication)
- International Franchise Association (company)
- James Fell (person)
- franchise regulation (topic)
- U.S. Department of Labor (regulator)
- joint employer rule (topic)
- labor standards (topic)

---
Originally reported by James Fell, Global Franchise (https://www.global-franchise.com/news/international-franchise-association-praises-department-of-labors-joint-empl). Summarized by Burnaze (https://burnaze.com/article/c97f5548-5e4a-42e3-84d3-38f6396c6af8).