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Franchise Protection: Safety Training Does Not Create Joint Employment Status.

This bill clarifies that when a franchisor provides franchisees with training or policies on important social issues like workplace safety, discrimination, sexual harassment, or COVID-19 protocols, this action alone cannot establish a legal joint employment relationship. The goal is to protect the franchise business model by ensuring franchisors are not automatically deemed 'joint employers' under major federal labor laws. This maintains the existing structure where the individual franchisee remains primarily responsible for their employees' wages and working conditions.
Key points
Franchisors can provide training and require policies on social issues (e.g., anti-discrimination, paid leave, human trafficking) without becoming legally responsible for the franchisee's employees' wages or working conditions.
The protection applies specifically to federal laws governing minimum wage (FLSA), union rights (NLRA), and workplace safety (OSHA).
Requiring or providing COVID-19 related policies or equipment (like PPE) cannot be used as evidence of an employment relationship.
The Act overrides conflicting state laws regarding the definition of an employment relationship in the franchise context.
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Expired
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Additional Information
Print number: 118_S_1104
Sponsor: Sen. Braun, Mike [R-IN]
Process start date: 2023-03-30
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Protections for Socially Good Activities Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1104.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-03-30.

What are the main provisions?

Key points include:

  • Franchisors can provide training and require policies on social issues (e.g., anti-discrimination, paid leave, human trafficking) without becoming legally responsible for the franchisee's employees' wages or working conditions.
  • The protection applies specifically to federal laws governing minimum wage (FLSA), union rights (NLRA), and workplace safety (OSHA).
  • Requiring or providing COVID-19 related policies or equipment (like PPE) cannot be used as evidence of an employment relationship.
  • The Act overrides conflicting state laws regarding the definition of an employment relationship in the franchise context.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Braun, Mike [R-IN].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Labor Courts and Law