Franchises appeal Seattle minimum wage case to U.S. Supreme Court

Jan 25 (Reuters) - A business group said on Monday it was
asking the U.S. Supreme Court to hear its appeal of a
lower-court ruling tossing out its challenge of part of
Seattle's law to increase the minimum wage.
The International Franchise Association, which brought its
lawsuit against the city in June 2014, says the law favors
independent businesses because it requires franchises like
McDonald's (N:MCD) MCD.N and Burger King QSR.TO to phase in the new
$15 minimum wage more quickly.
"Our appeal has never sought to prevent the City of
Seattle's wage law from going into effect," association
President Robert Cresanti said in a statement.
"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," he said.
The association's lawsuit challenges the law's treatment of
franchises as subsidiaries of parent companies, rather than
completely separate businesses.
Representatives for the city could not be immediately
reached for comment. Commenting on the lawsuit last year,
Seattle Mayor Ed Murray, a Democrat who championed the wage
hike, said: "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."
A federal judge last March denied the group's lawsuit,
saying it failed to back up its discrimination claims. The 9th
U.S. Circuit Court of Appeals upheld that decision in September.
The law, which took effect on April 1 last year, requires
businesses in Seattle with more than 500 employees nationwide to
raise their minimum wage to $15 by 2018. Smaller companies have
until 2021.
Seattle is among a number of large U.S. cities to pass laws
raising the minimum wage above $10 an hour. The franchise
association's lawsuit could have an impact in cities like
Chicago and San Francisco.
The association said it expected the Supreme Court to say in
the spring whether it would take the case.