Franchisor Protection: No Employment Relationship for Socially Good Activities
This act clarifies that franchisors do not become employers of franchisees, even when providing training or requiring policies on important issues like workplace safety or anti-discrimination. This aims to make it easier for franchisors to support franchisees in these areas without fear of new employment obligations. Citizens might experience more consistent standards across franchise networks.
Key points
Franchisors can offer training and require policies on harassment, human trafficking, workplace violence, discrimination, or COVID-19 without being considered employers of franchisees.
The act applies to key labor laws, including those governing employment relationships, minimum wage, and workplace safety.
State laws inconsistent with this act will be overridden, potentially standardizing rules for franchises across different states.
Status:
Expired
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