A federal judge ruled against small business owners seeking to temporarily halt part of Seattle’s looming $15 minimum wage law. As Shift reported, the International Franchise Association (IFA), along with five local franchisees, sought a preliminary injunction to suspend the portion of the $15 minimum wage law that classifies franchises—no matter the size—as big businesses, which places them at a financial disadvantage against other small businesses by putting them on a “faster track toward paying workers $15 an hour.”
Seattle Mayor Ed Murray said in a statement following the ruling,
“This is a great day for Seattle’s fast food franchise workers. This ruling ensures that on April 1st, the minimum wage will go up for everyone in our city. Rather than investing in lawyers to prevent workers from earning higher wages, it is time for these large businesses to begin investing in a higher minimum wage for their employees.”
Notice how Murray snuck in the “large businesses” reference. It’s exactly why the local franchise owners filed the lawsuit—they are not “large businesses,” they are small businesses absurdly classified as large ones because of their franchise affiliation – and to meet the political objectives of Murray’s union campaign donors. Most of these franchise businesses have modest number of employees, yet are placed in the same category as businesses with more than 500 employees due to clear discrimination at the hands of the law’s authors.
The lawsuit will proceed to trial later this year. IFA President and CEO Steve Caldeira vowed to keep fighting. He said,
“The ordinance is clearly discriminatory and would harm hard-working small business owners who happen to be franchisees. Those who have set out to destroy the long-accepted, time-tested and proven franchise business model must be stopped.”
