The U.S. Supreme Court will not take up a challenge to a Seattle ordinance raising the city's minimum wage to $15 a hour, letting stand a lower court ruling upholding wage hike and dealing a legal blow to the International Franchise Association.

The Supreme Court on Monday refused to hear the lawsuit, which had been brought against the city by IFA and five franchises, according to Reuters news service. The association argued the ordinance was unconstitutional because it treated franchises as large businesses when it came to enforcement. Two lower courts disagreed, and by rejecting IFA's appeal, the Supreme Court let those rulings stand.

"Seattle's ordinance is blatantly discriminatory and affirmatively harms hard-working franchise small business owners every day since it has gone into effect," IFA President Robert Cresanti said in a statement after the Supreme Court decision was announced.

The ordinance, which took effect in April, requires businesses with at least 500 employees nationwide to raise their minimum pay to $15 an hour by 2018. Businesses with fewer than 500 employees have until 2021 to raise their wages. Seattle's current minimum wage is $11 for large employers and $10 for many smaller employers.

IFA argued franchises shouldn't be treated as large employers given that most franchise stores and restaurants are not owned by the franchisor, which is the company that owns the products and trademarks. The city and Service Employees International Union countered that franchises have access to resources many independent small businesses do not, such as loans and bulk purchasing. http://reut.rs/1NiEWku

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