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Updates


Connecticut Joint Employer Bill Defeated as Legislature Adjourns

Franchisees and franchisors should celebrate the end of the legislative session in Connecticut with the defeat of House Bill 6791 and Senate Bill 1044. The radical and unprecedented bills, heavily backed by organized labor, would have required a franchisor to pay the state of Connecticut a fee of one dollar per hour for each franchisee employee who was not paid $15 per hour.

Last year, the legislature rejected similar legislation despite the logistical and legal flaws in the bills pointed out by IFA and local business groups. Yet Rep. Peter A. Tercyak, a staunch advocate of the AFL-CIO, bowed to the intense union pressure, reintroducing the legislation this year, along with the flawed idea that a franchisor should be held responsible for the wages a franchisee pays its employees. Franchisees are independent local small business owners who make their own decisions about wages, benefits and scheduling.

“IFA is extremely grateful these two misguided and unconstitutional bills were once again rejected by the Connecticut Legislature. However, the fact they were even introduced lends further credence to the downward trajectory of Connecticut as a state friendly to small businesses,” said Dean Heyl, IFA Vice President of State Government Relations & Public Policy and Tax Counsel.

Connecticut’s economy was recently named 2nd worst in America and the 46th overall by CNBC on 56 measures of competitiveness, developed using input from business groups, economic development experts, companies and the states themselves.

Date: 2015-06-19

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