Trump Administration Urges Passage of Joint Employer Legislation at IFA Advocacy Summit
- A White House official underscored Trump administration support for the American Franchise Act. He was speaking at the International Franchise Association’s 2026 Advocacy Summit in Washington, D.C.
- Pending in the House, the bipartisan bill would permanently define the joint employer standard as well as reduce franchisors’ liability.
- In its lobbying for the bill’s passage, the IFA has released findings from its poll showing Americans’ strong backing for franchise businesses.
Vince Haley, director of the White House’s Domestic Policy Council, told International Franchise Association members that the Trump administration totally backs the bipartisan American Franchise Act. Haley’s remark came during his keynote address to hundreds of members of the franchise community who attended this month’s IFA 2026 Advocacy Summit in Washington, D.C.
“I know the biggest item on the agenda at this gathering is driving momentum for passage of the American Franchise Act,” Haley told the crowd. “I think you already know this, but I want to assure you that the Trump administration fully supports this bill, and no matter what happens this year, we have to get it done this year.”
Bill at ‘Critical Juncture’
IFA President and CEO Matt Haller (above) thanked the Trump administration for its stance. “During the decade-long debate over the federal joint employer standard, the franchising community has had no firmer ally,” Haller said. He further commented that the IFA is grateful for White House support “at this critical juncture.” In July, the House Education and Workforce Committee advanced the bill, making it eligible for a vote by the full House.
Haller emphasized the importance of the legislation by pronouncing the American Franchise Act “the most important piece of legislation for the franchise community in a generation, and with bipartisan momentum building, the time is now to get it done. Ending the regulatory whiplash once and for all would be a powerful boost for America’s 832,000 franchise small businesses, the nearly 9 million jobs they support, and the upward mobility they create.”
Throughout much of the annual IFA Summit, 500-plus members of the franchise community urged passage of the American Franchise Act as they met with senators and congressmen and their staffs as well as representatives of federal agencies.
About the American Franchise Act
The American Franchise Act has been kicking around in Washington for about a year already. Introduced in September 2025 by seven Republicans and seven Democrats, the bicameral legislation establishes a single, franchise-specific joint employer standard under the Fair Labor Standards Act and the National Labor Relations Act. Since 2015, this standard has been modified four times, causing uncertainty for franchisors and franchisees regarding who is responsible for labor infractions.
If passed by Congress and signed by President Donald Trump, the law would:
- Establish a clear joint employer standard by means of a permanent definition that applies to franchisors and franchisees.
- Limit the liability of franchisors for violations of labor laws and regulations that occur at franchise businesses. Under the pending congressional legislation, a franchisor would qualify as a joint employer only if the franchisor directly and substantially controls the terms and conditions of what a worker does – including hiring, wages, hours and discipline.
- Stop the National Labor Relations Board flip-flopping on joint employer rules depending on which political party controls the White House.
IFA’s Push for Passage
During the IFA’s lobbying on behalf of the American Franchise Act, the association in June emphasized its poll findings that more than 70% of Americans support franchises and protections for the business model. The poll also found that 72% of Americans say they prefer to patronize brands that expand through franchising rather than corporate chains.
In a September 2025 post on the IFA’s website, the IFA conducted research on how the less-restrictive joint employer standard affected franchising. Citing its results, the IFA reported that from 2015 to 2017 – a period when the joint employer standard expanded franchisors’ liability – the change cost small businesses $33.3 billion, resulted in the loss of 376,000 jobs and prompted a 93% jump in lawsuits within the franchise sector.
The American Franchise Act appears to be a slam-dunk for Trump’s signature if Congress passes it, according to a Wall Street Journal article. During a speech at the McDonald’s Impact Summit in November 2025, the president talked about how he had stopped “a mortal threat to the franchise business model by terminating the infamous Obama joint-employer rule” during his first term. “That would have been death to businesses like yours and others,” he told McDonald’s franchisees at the Washington gathering.
Click on the IFA’s video to see Haley’s speech to the Sept. 14-16 summit in Washington.
