The Joint Employer Standard Hurts the Economy

Economic Impact

New, groundbreaking research shows that the expanded joint employer standard has cost franchise businesses $33.3 billion per year, resulted in 376,000 lost job opportunities, and led to 93% more lawsuits.

An Expanded Joint Employer Standard Led to a 93% Increase in Litigation Against Franchise Businesses


69% of Americans say it’s important for policymakers to change the joint employer standard so national brands and franchise owners can better work together.

73% of Americans believe that the individual who owns and operates a franchise business should have control over managing its employees.

92% of surveyed franchise businesses say the expanded joint employer standard has led to less support from their brands

Reasons for less support

  • Increased litigation and legal costs
  • Increased costs from outsourcing training
  • Increased difficulty implementing training to address sexual harassment and sensitivity
  • Reduced quality and safety support

70% of Americans support government policies that promote local ownership of stores and restaurants.



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Myth v. Fact

Addressing the false information regarding the joint employer standard

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