Corporate just can't do what's right.
Stay classy
fast-food industry:
In early June, shortly after the city’s mayor and city council agreed to a staggered minimum wage increase, the International Franchise Association (IFA) filed a lawsuit claiming that the new law discriminates against franchisees. The industry group followed up with another legal filing this week: A motion for a preliminary injunction against certain provisions of the minimum wage law.
The issue at hand is that there is a provision in Seattle's minimum wage raise that distinguishes between small businesses and large businesses. Large businesses have to get their minimum wage increase up to $15 an hour faster than small businesses. Makes sense. The issue at hand is that franchises counts the same as a business with 500 or more employees.
The Seattle lawsuit, and the city’s legal defense, is just part of a larger battle over the legal status of the franchise business model. While the IFA claims that franchises are just like any other small business, groups like the National Employment Law Project (NELP) insist they should be considered in a separate category due to their relationship with major franchisor businesses like the McDonald’s Corporation. NELP general counsel Paul Sonn told msnbc that it is “perfectly legal” to distinguish between franchisees and other small businesses, given their place within larger franchise supply chains.
“We think this is a sensible policy choice based on the understanding that franchisees like McDonald’s and other fast food chains benefit from the economy of scale, and can start paying a higher wage faster than other companies,” he said.
Of course, these are the same businesses that are
being sued for
stealing the wages of workers.
A survey published last year by polling firm Anzalone Liszt Grove says 84% of New York fast food workers report having wages stolen through failed reimbursements, unpaid overtime and other violations.
“Although [the Cisneros settlement] is with just one large franchise owner, McDonald’s cannot hide from its responsibility for these unlawful practices,” said Jonathan Westin of activist group Fast Food Forward.
A decision on the injunction should come next week.
