American Franchise Act

This bill changes two federal labor laws, the National Labor Relations Act and the Fair Labor Standards Act, to set when a franchisor (the company that owns a brand) can be treated as a joint employer of a franchisee's workers. Under the bill, a franchisor could be a joint employer only if it has and uses substantial direct and immediate control over at least one essential term of employment, such as wages, benefits, hours, hiring, firing, discipline, supervision, or direction. The bill lists actions that do not count as this control, such as setting brand standards, setting a store's operating hours, offering training materials, or letting franchisees join a franchisor's benefits plan. The changes would not apply to cases that started before the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Roger Marshall Republican sponsor
• 11 cosponsors