A bipartisan group of lawmakers has introduced the American Franchise Act, legislation aimed at ending years of uncertainty surrounding how federal labor law treats franchisors and franchisees.
“Changes to joint-employer rules have caused costly uncertainty in the industry for too long,” Representative Don Davis (D-NC), one of the bill’s sponsors, said in a press release. “The American Franchise Act aims to restore stability by clarifying that franchisors and franchisees operate as independent employers while safeguarding workers through established labor standards.”
The bill, introduced by 14 House members, including Davis and Representative Kevin Hern (R-OK), seeks to formally establish in federal law that franchisees are independent business owners rather than employees of