Revealed: Democracy Alliance Member Nick Hanauer Crafted Seattle Minimum WagePosted: September 4, 2015
Hanauer is now at the center of a lawsuit filed by the International Franchise Association.
Radical venture capitalist Nick Hanauer served on a city advisory committee that eventually produced the legislation boosting minimum wages to $15 per hour. The legislation takes special aim at franchisees, forcing them to adopt higher wages than other small businesses under a shorter timeframe.
“The truth is that franchises like Subway and McDonald’s really are not very good for our local economy. They are economically extractive, civically corrosive and culturally dilutive.”
— Hanauer, in an email obtained by the association
Hanauer, a private-jet-owning multi-millionaire who once had a speech scrubbed from the TED conference website for being “too political,” is a member of the Democracy Alliance, a shadowy collection of liberal millionaires and billionaires that funnels money into Democratic causes.
The group has pumped hundreds of millions of dollars into various liberal foundations, Media Matters, and Democratic super PAC Priorities USA. The group is secretive and does not divulge membership rolls, fundraising goals, or allow reporters at its annual meetings.
“Franchising has been under intense scrutiny by union activists and hostile labor regulators in recent weeks.”
Hanauer is now at the center of a lawsuit filed by the International Franchise Association to overturn the law, according to the Seattle Times.
Wealth Destruction: Target Franchises.
“The truth is that franchises like Subway and McDonald’s really are not very good for our local economy. They are economically extractive, civically corrosive and culturally dilutive,” Hanauer wrote in an email obtained by the association.
The business group claims that the law is discriminatory because many franchisees are themselves small business owners akin to mom and pop shops. Franchisees pay licensing and other fees to large corporations to operate under the company umbrella, but the vast majority are independently owned and manage their own affairs.
Franchising has been under intense scrutiny by union activists and hostile labor regulators in recent weeks. In August the National Labor Relations Board (NLRB) overturned decades of precedent to hold corporations accountable for the actions of franchisees—a decision that critics say will destroy the model.
AR2, an association ally opposed to the wage law, said that the suit’s revelations point to discriminatory intent….(read more)
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