Business groups said NLRB decision would hurt economy

Several associations have joined with franchise business owners to form a new group to fight efforts to expand the definition of "joint employer" to include franchises like McDonald's.

The Coalition to Save Local Businesses was launched Tuesday "to educate public officials—especially members of Congress and the administration—about the importance of permanently codifying the decades-long common law and commonly practiced definition of joint employer," according to a statement on the group's website.

The coalition is a response to last year's National Labor Relations Board decision to label McDonald's a joint employer and hold it accountable for labor law violations at its franchises. The ruling was considered a win for unions, which are pushing for higher pay and better working conditions at franchises.

However, the coalition argues NLRB's actions could put many small companies out of business.

"There's no upside to upsetting the long-standing employer-employee relationship," said Steve Caldeira, CEO of the International Franchise Association. "In fact, these new regulations from the NLRB would diminish entrepreneurial investment, stifling job growth and economic activity in communities from coast to coast."

IFA is one of several "partner organizations" that helped found the coalition. Other partners include the American Hospital Association, American Hotel & Lodging Association, International Council of Shopping Centers, National Restaurant Association and National Retail Federation.http://bit.ly/16Tz8ZY