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Franchisor Protection: No Employment Relationship for Socially Good Activities

This act clarifies that a franchisor does not become an employer of a franchisee, even if they require adherence to policies on safety, anti-discrimination, or COVID-19. This aims to encourage franchisors to promote good practices without fear of additional employment obligations. Citizens may experience greater safety in franchised workplaces due to consistent standards.
Key points
Franchisors can require franchisees to adopt policies on harassment, human trafficking, workplace violence, discrimination, training, or scholarships without being considered employers.
Implementing COVID-19 related policies (e.g., PPE use) by a franchisor does not establish an employment relationship with the franchisee.
The act preempts state law, ensuring uniform rules nationwide regarding franchise relationships.
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Additional Information
Print number: 117_HR_4109
Sponsor: Rep. Walorski, Jackie [R-IN-2]
Process start date: 2021-06-23