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Suit: The Minimum Wage Is A Ploy To ‘Break’ The Franchise Model
Daily Caller ^ | 9/1/15 | Connor D. Wolf

Posted on 09/01/2015 6:52:19 PM PDT by markomalley

Franchisees argued in an appeals court Tuesday that the Seattle $15 minimum wage doesn’t just disproportionately hurt their businesses, it was designed to be that way.

Seattle led the way in implementing a $15 minimum wage back in June of 2014. To help mitigate the potential for economic harm, the increase was written to phase in over the course of several years, with small businesses allowed extra time to adjust. Small businesses except individually owned franchisees.

“Hundreds of small, locally-owned businesses and thousands of their employees are unfairly threatened by Seattle’s new law,” The International Franchise Association President Steve Caldeira said back in June. “We are not seeking special treatment for franchisees, we are just seeking equal treatment.”

The problem is, despite many franchisees being associated with large brand names like McDonald’s, they are actually small businesses. Franchising is unique because it allows a small business to contract with a large corporation in order to use its brand name and sell its products.

“The members of the advisory committee that developed the minimum wage law in Seattle have bashed franchises and admitted the law is designed to ruin a successful model that has created countless jobs,” Natalie Gillam, deputy communications director for AR Squared, said in a statement to The Daily Caller News Foundation. “Once again the ‘Fight for $15′ movement is revealed to be nothing more than an effort by union bosses to get a fatter payday.”

According to the lawsuit, some members of the advisory committee that developed the minimum wage law have admitted its meant to hurt franchises. Advisory member David Rolf allegedly said several times the city minimum wage is designed “to break the franchise model.”

The lawsuit also alleges that the increase will enable labor unions to more easily organize franchise employees. Along with being an advisory member, Rolf is also president of Local 775 of the Service Employees International Union.

“The only purposes of the Seattle wage ordinance are to provide for $15 minimum wages, lift working Seattleites out of poverty, and stimulate economic growth by putting more money into workers’ pockets,” Rolf said in a statement to TheDCNF. “I am completely agnostic about the franchise model. Every business, franchise or not, should be paying their employees enough to live a dignified life.”

Federal labor officials in the Obama administration have also been accused of trying to undermine the franchise model to help unions. Recent decisions by the National Labor Relations Board (NLRB) makes it easier for a franchise to be considered one large corporation instead of many small businesses that contract with a large corporation. This allows unions to organize one large employer instead of hundreds or thousands of small businesses.


TOPICS: Business/Economy; Extended News; Government; US: Washington
KEYWORDS:

1 posted on 09/01/2015 6:52:19 PM PDT by markomalley
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To: markomalley

It’s also a pry bar for the illegal Mexican crisis.

No MW, no need to sneak in workers under the table, no illegals running the border constantly.

It all dries up.


2 posted on 09/01/2015 6:55:44 PM PDT by the OlLine Rebel (Common sense is an uncommon virtue./Federal-run medical care is as good as state-run DMVs.)
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To: markomalley

Let the idiots in Seattle who voted for the socialists who passed this pay for it.


3 posted on 09/01/2015 6:56:04 PM PDT by Blood of Tyrants (There's a right to gay marriage in the Constitution but there is no right of an unborn baby to life.)
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To: markomalley

Why do we not hear one candidate that I know of calling for the TOTAL REPEAL of minimum wage, probably the single most destructive economic factor perpetrated on us by an unconstitutional federal government? Minimum wage drives costs and prices up, kills jobs, and sends businesses elsewhere. The culprit is not China, Japan, or the Man in the Moon. The economic culprit is the FEDERAL GOVERNMENT.

WILL ANYONE SPEAK IT OUT AND DEAL WITH IT?


4 posted on 09/01/2015 6:59:03 PM PDT by Jim W N
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To: Jim 0216

You can’t have millions of illegals flooding the USA and no minimum wage. That would be a race to the bottom.


5 posted on 09/01/2015 7:00:25 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: markomalley

Let the idiots in Seattle who voted for the socialists who passed this pay for it. The socialist DemocRats have to raise the minimum wage because they have driven all the low skill but decent paying jobs out of the country.


6 posted on 09/01/2015 7:00:25 PM PDT by Blood of Tyrants (There's a right to gay marriage in the Constitution but there is no right of an unborn baby to life.)
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To: markomalley

It’s also intended to saw more rungs off of the ladder.


7 posted on 09/01/2015 7:04:29 PM PDT by stevem
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To: markomalley

Everything about this administration is about finding new ways to cripple our morale and nation so badly that it will never recover spiritually or financially and weaken us militarily to the point that takeover by a 7th ventury barbaric satanic cult is possible.


8 posted on 09/01/2015 7:12:46 PM PDT by jsanders2001
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To: central_va

???????????????

Are you actually defending minimum wage? Are “conservatives” that confused???????


9 posted on 09/01/2015 8:07:25 PM PDT by Jim W N
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To: markomalley

Jason Riley’s book “Please Stop Helping Us” has an excellent chapter on the minimum wage, where it came from, and how it really hurts rather than helps the poorest. In addition to the well-known and documented fact that it kills jobs for beginning workers, it benefits mainly those already making adequate livings, because most of the working poor are already into their working lives and making more than minimum wages, while most of those just beginning at minimum wage are just starting their working lives and are many times teens from already well-off families. Moreover the minimum wage really got started back in the twenties when contractors in the north would import blacks from the south to work on building projects because they would work for wages below the going rate. Labor unions, which had already been keeping blacks out of the labor pool, went to their political buddies and got laws passed that guaranteed that those working on government construction projects - union and therefore white jobs - would always get paid a guaranteed minimum rather than the prevailing wage which had been lowered by black labor. Thus according to Riley, the minimum wage hurts rather than helps the poor and black workers it is often touted as being instituted for.....


10 posted on 09/01/2015 9:05:07 PM PDT by Intolerant in NJ
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To: central_va

I agree. Keep the minimum wage and help ensure illegals are always able to undercut US citizens.


11 posted on 09/01/2015 9:22:11 PM PDT by ConservativeMind ("Humane" = "Don't pen up pets or eat meat, but allow infanticide, abortion, and euthanasia.")
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To: the OlLine Rebel

Designed to help more illegals steal more American jobs.


12 posted on 09/01/2015 9:35:56 PM PDT by TBP (Obama lies, Granny dies.)
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To: ConservativeMind
I agree. Keep the minimum wage and help ensure illegals are always able to undercut US citizens.

Hopefully President Trump can get the crazy illegal invasion under control.

13 posted on 09/02/2015 3:18:27 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Jim 0216

A lot of “conservatives” do not care about the illegal invasion, don’t care about the minimum wage and don’t care if America looks like Brazil in 20 years. They are on the cheap labor express, hell they put coal on the fire.


14 posted on 09/02/2015 3:22:10 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: markomalley

I think there’s a lawsuit on the $15 minimum wage for restaurants being unfair, because in the jurisdictions, it doesn’t apply to lawn services, childcare providers and all other minimum wage laden industries.


15 posted on 09/02/2015 5:16:55 AM PDT by tbw2
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To: central_va

Nothing wrong with the “cheap labor express” which apparently some think would be a “bad result of no government wage controls. But the “cheap labor express” is how young people and blacks enter the work force, it is what keeps prices down and employment high, and businesses cost-effective. “Conservatives” seem to be clueless about how the free market economy works and the fact the free market economy is the ONLY source of wealth and economic health and growth in a society.

Government wage controls are a COMPLETELY separate issue from maintaining safe borders and LEGAL immigration.

Nevertheless, government controls on wages has created a market for illegal cheap labor the way misguided government prohibition on alcohol in the 1920’s created a market for illegal booze. Unconstitutional federal government interference not only weakens the economy but encourages crime. And, like repealing prohibition, without minimum wage, there would be no demand for illegal supply. Here, demand for illegal labor would dry up because there would be plenty of people here legally to fill the openings. All minimum wage does is raise unemployment (ex. ex-Walmart employees) and crime and send businesses to China and Mexico.

The source of our economic troubles and much of our criminal problems is not China, Japan, or the Man in the Moon. It’s the feds. It is astonishing that no right-wing candidate is harping on this.


16 posted on 09/02/2015 7:30:46 AM PDT by Jim W N
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To: markomalley

http://www.nationalreview.com/article/423413/economics-good-intentions-don’t-guarantee-good-results


17 posted on 09/02/2015 7:49:20 AM PDT by Jim W N
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