IFA Seeks Appeal of Seattle Minimum Wage Case

The city hopes to raise minimum wage to $15 an hour by 2017.

SPONSOREDUpdated 1:13PM • 01/29/16

The International Franchise Association (IFA) is appealing to the U.S. Supreme Court to overturn a decision by the Ninth Circuit court in Seattle to raise minimum wage. The ordinance passed by the Circuit Court would require franchisees and employees with more than 500 workers to change the minimum wage to $15 per hour by January 1, 2017.

The IFA claims the new minimum wage hike discriminates franchise operators, who are categorized as small and local business owners. The ordinance contends that franchises are defined as large corporations under the National Labor Relations Board “joint employer” designation. IFA President & CEO Robert Cresanti said in a release that the organization issued the appeal to help franchise owners get a fair shake in the decision.

“The controlling Supreme Court precedent and the conflict among the decisions of the federal circuit courts have proven that a Supreme Court review of the Ninth Circuit’s decision is the appropriate next step,” Cresanti said. “Our appeal has never sought to prevent the City of Seattle’s wage law from going into effect. Our appeal to the Supreme Court will be focused solely on the discriminatory treatment of franchisees under Seattle’s wage law and the motivation to discriminate against interstate commerce.”

Under the ordinance, city businesses with 500 or fewer workers will have to increase minimum wage by 2017. This is not the first time the city and IFA have met on the issue. In 2014, the city was sued by the IFA and five franchise operators looking to stop the ordinance, but were unsuccessful.

The City of Seattle has 30 days to respond to the claim, and the Supreme Court is projected to make an announcement in the spring whether or not they will hear the case.