A HUGE Win for Franchising!

 On June 19, 2018, the Department of Labor (DOL) announced a final rule on Association Health Plans, and it is great news for franchise businesses!

What does the rule mean?

Essentially, the rule expands the definition of “employer” to allow for increased access to Association Health Plans and also includes a “safe harbor” from any new potential joint-employer liability as a result of participating in one of these new health care plans.

How does the rule affect franchises?

Under the new federal rule, small business owners will be able to join together to buy health insurance plans. That increased bargaining power can lead to lower prices and more cost-effective coverage – which can result in lower premiums for employees. Plus, franchise business owners will be exempt from any possible joint-employer liability that may have come about if they partnered with other franchisees operating under the same brand.

That joint-employer policy allows franchisees to take full advantage of the June 19 ruling. It’s good news for franchise business owners and employees, who can have more choice and lower prices in the health care marketplace. It’s also been a top priority of the IFA government relations team.

How did we get here?

Over the past 18 months, IFA staff in Washington have met with the Labor Department on this vital issue. We have explained how this policy can help franchise businesses and stressed why the joint-employer provisions were so important to our industry. I have been in regular contact with Labor Secretary Alexander Acosta, and the IFA and Labor Department staffs have worked together to agree on the policy details. We have submitted formal requests to the Administration and have had a bipartisan group in Congress champion our cause. 

We were pleased in fall 2017 when franchise business leaders joined President Trump in the White House as he signed an executive order moving forward on Association Health Plans, as you can see in the smiling photo below. We’re even happier today – and glad we can share this good news with you.