CEO DATELINE - IFA wants Supreme Court to rule on Seattle's minimum wage law
CEO DATELINE - IFA wants Supreme Court to rule on Seattle's minimum wage law
- January 26, 2016 |
- Walt Williams
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The International Franchise Association wants the U.S. Supreme Court to overturn a lower court decision upholding a Seattle ordinance that will gradually increased the city's minimum wage to $15 an hour.
In a petition filed Monday, IFA contends the Ninth Circuit Court of Appeals erred when it affirmed a district court ruling finding the association and five franchises failed to make their case that franchises were being treated unfairly under the ordinance.
Seattle's ordinance sets separate timelines for compliance with the higher minimum wage depending on the size of the business. Franchises are treated as large businesses under the law, but IFA said that is unfair given franchises are independently owned businesses, each with a small number of employees.
"Our appeal has never sought to prevent the City of Seattle's wage law from going into effect," IFA CEO Robert Cresanti said. "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."
The association pointed to a recent survey that found the ordinance would result in a 64 percent reduction of employee hours at franchises, compared, with a 46 percent reduction in non-franchise businesses. At the same time, 65 percent of franchise businesses said they would need to reduce staff in response to a $15 minimum wage.
Seattle has 30 days to respond to IFA's Supreme Court filing. The court will announce in the spring whether it will hear the case.
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