The city of Seattle will be back before a judge Tuesday over its minimum wage law, as the professional organization representing franchise businesses appeals an earlier court loss.
Seattle’s law lets small businesses raise their minimum wage more slowly, but it treats most franchises like big businesses: A chain restaurant that is independently owned has to hike its wage just as fast as one owned by corporate.
The International Franchise Association says that’s unfair. They sued and lost, and now are bringing their case before the 9th Circuit Court of Appeals.
“[The judge] got a number of the constitutional issues wrong, most specifically the commerce clause,” says Robert Cresanti, the Association’s Executive Vice President of Government Relations and Public Policy.
Even though the Association argues its members are small businesses, the appeal rests on franchisees’ connections to their big national brands. The Association says that makes it interstate commerce, which local law cannot impede or use as a basis for discrimination.
The lower court judge did not find that persuasive. But Cresanti says he’s optimistic about the appeals process.
“We are very confident in this case,” he says. “We’ve been prepared to take this to the Supreme Court since day one.”
Seattle officials declined to comment on the pending litigation. They have said in the past that franchisees enjoy extra resources thanks to their corporate affiliation, and that means they’re more like larger businesses.
