---
title: "International Franchise Association Speaks Out Against New Overtime Pay Regulations"
url: https://burnaze.com/article/e9b6d232-cb8f-450b-8eba-c52d50c11f94
source: "1851 Franchise"
original_url: https://1851franchise.com/international-franchise-association-speaks-out-against-new-overtime-pay-regulations-4652
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Regulation & legal"]
published: 2016-05-18T18:13:00.000Z
modified: 2026-11-01T12:24:33.700Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/cbe69668d8bd58e2910ef79884ce18547368160518150737.png
---

# International Franchise Association Speaks Out Against New Overtime Pay Regulations

**TL;DR:** The International Franchise Association (IFA) speaks out against new overtime pay regulations, citing potential negative impacts on businesses. The new regulations double the maximum annual income a salaried worker can earn and still be automatically eligible for overtime pay.

*originally published in 1851 Franchise on 2016-05-18. [Read the original](https://1851franchise.com/international-franchise-association-speaks-out-against-new-overtime-pay-regulations-4652).*

## Story

The wait for business owners across the country is over—the Obama administration released the final version of the long-awaited rule to extend overtime pay in the U.S. to 4.2 million workers.

According to a Reuters article featured on CNBC, the new regulations double the maximum annual income a salaried worker can earn and still be automatically eligible for overtime pay. Before business owners were only required to pay overtime to employees who work more than 40 hours a week and earn less than $23,660. But now, overtime pay applies to employees making under $47,476.

The new regulations have been widely criticized by business groups. In a press release, President and CEO of the International Franchise Association (IFA) said, “Far from ‘giving America a raise,’ the new overtime rule will compel many franchise businesses to reduce their managers’ take-home pay simply to comply with the extreme new salary level.”

The White House says the new overtime rule will ultimately put $12 billion in Americans’ pockets over the next 10 years. But business groups say companies will be forced to cut wages and hours, and may even have to slow down hiring.

The rule will officially go into effect on December 1.

“Franchising is a unique business model that provides working Americans the chance to operate and own a small business, yet government regulations like the new overtime rule are continuously jeopardizing this ladder of opportunity and stripping away employees’ ability to negotiate their future,” stated Cresanti.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- International Franchise Association (company)
- Reuters (company)
- White House (regulator)
- franchise businesses (topic)
- Obama Administration (regulator)
- government regulations (topic)
- overtime pay regulations (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/international-franchise-association-speaks-out-against-new-overtime-pay-regulations-4652). Summarized by Burnaze (https://burnaze.com/article/e9b6d232-cb8f-450b-8eba-c52d50c11f94).