Seattle’s $15 minimum wage law hit a new but expected obstacle this week — the International Franchise Association (IFA) filed a lawsuit against the city which claims the new law discriminates against the franchise business model. As SHIFT previously reported, the law defines franchises as large businesses—even if a particular franchise is owned and operated by a small business person.
The flawed definition is pushed by the unions like SEIU which fund the $15 movement across the country — and supported by brilliant community college economists like Seattle City Councilmember Kshama Sawant — is troublesome due to the competitive disadvantage it places small business franchise owners in.
Non-franchise small businesses have seven years to “transition” into anti-competitive $15/hour minimum wage demanded by SEIU under Seattle’s new minimum wage law. By contrast, large businesses — defined by businesses with more than 500 employees — have three years to jack up their employees costs to $15 an hour. In other words, due to the discriminatory nature of the law, a local franchise owner with 15 employees is classified as a large business and forced to increase personnel costs by as much as 60% in three years’ time. Meanwhile, the non-franchise small business competitor down the street— even with the same 15 employees — has seven years.
Why does Seattle’s minimum wage law so blatantly target franchise owners? The IFA’s legal brief offers the “we-saw-it-from-a-mile-away” answer.
The brief includes:
- A sworn statement from Seattle businessman David Meinert, a member of Mayor Ed Murray’s Income Inequality Advisory Committee (IIAC), which states the following,
“During the IIAC process, there were discussion about whether the Mayor’s minimum wage bill should treat small franchise businesses as large employers. I had several meetings with David Rolf [President of SEIU Healthcare 775NW and co-chair of IIAC] in which he told me that the purpose behind treating small franchise businesses as large employers under the minimum wage law was “to break the franchise model” and “enable labor unions to organize employees of such businesses.’”
- A sworn statement from Dean Heyl — an IFA employee — recalling a meeting he had with small franchise owners and Mayor Murray in May 2014. The statement reads as follows,
“The Mayor stated that the provisions of the bill treating small franchise business as if they were large businesses were included because they were required to secure the approval of the Service Employees International Union (“SEIU”).
“Near the end of the meeting, the Mayor said words to the effect that ‘you won’t hear me slam quick service restaurants or the franchise model.’
“Less than two weeks later, on June 11, 2014, the Mayor issued a public statement regarding IFA’s legal challenge to the minimum wage ordinance. The Mayor’s statement said in part that “[t]here is a problem in the franchise business model…”
- An email from Meinert, sent on May 5th to Mayor Murray staff members Brian Surratt and Robert Feldstein, which reveals even $15 NOW leader Kshama Sawant was frustrated by the fact that Rolf manipulated the $15 minimum wage law to serve the political objectives of the SEIU. The email reads,
“Ironically, Sawant is also pissed at Rolf and Labor for manipulating the process and using this issue for goals outside of raising all workers wages. I hope you realize how much Rolf has played all of us, including you guys.”
The big take-away from the yet unfolding debacle that is Seattle’s $15 minimum wage law? As with all “I’m looking out for the little guy” policies liberal Democrats love to endorse, it’s never really about the little guy. Rather, it’s about a very specific special interest agenda that works to give an inordinate amount of power to labor unions which, in turn, give lots of money to ensure Democrats keep getting elected. Of course, all at the expense of the little guy.
According to the Seattle Times, a spokesman for the IFA asked, “Who in their right mind wants to become a franchisee in Seattle now? They are immediately placed at a competitive disadvantage to local small businesses.”
While we agree with the spokesman’s sentiment, it’s probably safe to take that question one step forward and ask, “Who in their right mind would want to start ANY business when special interests have such control over corrupt Seattle politicians?”
Do you live in Seattle and like your pizza delivered? Every Pizza Hut in the city limits will be closing down as a result of the minimum wage law. It’s already been decided.
Hmmmm ? Looks like one store on Madison, huh ??? As for your “story”, it would sure be nice to see some “honest” perspective, but you’re boozy “right ” now, huh ???
HAHAHAHAHAHAHAHAAHAHHAHAHAAHHA !
Except that people that work at Pizza Hut can’t go out for MUCH BETTER choices for pizza. These people will actually be loosing their jobs. But I guess that doesn’t matter to $15 per hour folks now does it? I mean, what difference does it make if people loose their jobs, as long as some make the $15. It means those that support the $15 ‘wins’ over those greedy big corporate businesses no matter how many lower, job entry income people loose their jobs. Yes we know you have an agenda and will stop at nothing to accomplish it, including hurting the newly employed and the poor. Yes I remember, Democrats and Progressives are always reminding us that they fight for the little guy. I better write that down somewhere, I’m apt to forget it.
So, your “theory” is an unproven allegation, you dishonestly wrote under a fake moniKKKer proves a dozen folks who MAY lose their jobs (pending proof) is more important, than a living wage for ALL SEATTLE WORKERS ???
HMMMM ? According to your “logic”, working for a decent wages is BAD, but working for sub par sweat shops is good ???
Fine, we’ll be by to pick up that food you’ll provide for the food bank, as soon as you post your address.
GO to a third world country, THIS IS America, you dishonest POS.
Robin Hood you’re the real POS, pjberg is right, just wait to see how many businesses relocate, don’t renew lease or any new business ever opening up in Saettle…for these workers some money is better than no money…your earnings are the value you contribute to owners and shareholders who started the business with their OWN money, not vice versa! Get a degree Robin Hood and get off the dole.
Some money ???
HAHAHAHAH! Come on over, I’ll pay YOU 50 cents to wash my car… In fact, I’ll have dozens of cars for you to wash !!
“…some money is better than no money…your earnings are the value you contribute to owners and shareholders …”
PUT UP TIME, pup.
Can’t find this “news story” & business (singular) fail all the time. Guess, the taxpayer needs to provide more welfare, SNAP, & foodstuffs to “allow” the ownership to prosper ??? Oddly, there’s been a minimum wage since the 30s & it been raised dozens of times.
PS- Personal attacks as proof ? Yeah, you’re proven immaturity.
Can’t find this “news story” & business (singular) fail all the
time. Guess, the taxpayer needs to provide more welfare, SNAP, &
foodstuffs to “allow” the ownership to prosper ??? Oddly, there’s been a
minimum wage since the 30s & its’s been raised dozens of times.
PS- Personal attacks as proof ? Yeah, you’re proven immaturity.
Rolf is good at pulling fast ones. the Mayor and Council have no backbone. Their pockets are all lined with SEIU money paidon behalf of poor workers who get thrown under the bus. Simple as that!