As more states introduce higher minimum wage laws, some home care franchises may be facing a serious issues. “Last week, a franchisee of home health care company BrightStar Care was in court fighting a “discriminatory” law over a provision of Seattle’s new minimum wage law, which would increase the city’s rate to $15 per hour.
The law classifies franchise businesses in the same category as businesses with more than 500 employees and requires them to ramp up minimum wage to $15 per hour by 2017 or 2018. However, small, independent businesses are allowed up to seven years to reach the same rate.
Shelly Sun, co- founder and CEO of BrightStar Care, told SHN why she’s on the foreground of the fight and standing behind one of her Seattle franchise owners, Kathy Lyons, who has signed on as one of four plaintiffs in a lawsuit against Seattle by the International Franchise Association.
“Even though Kathy Lyons is completely independent with 50 employees, she’s considered to be the same size employer as Microsoft or Starbucks in the Seattle marketplace,” Sun told SHN. “That feels unfair and discriminatory.”
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