In a statement, IFA president and CEO Robert Cresanti responds to the positive ruling and discusses what’s next for franchising as President-elect Trump’s inauguration day nears.
For months, the franchising industry has been vocal about its concerns over the Department of Labor’s new overtime rule. Right now, small business owners across the country are required to pay overtime to employees who work more than 40 hours a week and earn less than $23,660 annually. However, the new rule doubles that salary threshold by extending overtime to employees making $47,476.
Initially, the rule was set to go into effect on December 1. But a ruling by a Texas judge has now issued a preliminary injunction stopping the implementation of the new overtime regulation. International Franchise Association president and CEO Robert Cresanti issued a statement after news of the ruling broke.
“Now, franchises are breathing a collective sigh of relief. Franchise owners who had been facing significant costs and questions about the impact the overtime rule was creating for compliance with an unreasonable new threshold and automatic increases,” said Cresanti.
Overtime regulations are one of many challenges facing the franchising industry in today’s business economy. Cresanti says that the IFA is excited to work with President-elect Trump and his administration to overcome these issues and find solutions that will move franchising forward.
Cresanti said, “Moving forward, IFA looks forward to working with the Trump administration and congressional leaders to ensure additional regulations that exceed statutory authority are addressed in short order.”
To read the IFA’s full statement, click here.