Trademark Licensing Protection: Clarifying Employer Status in Franchising.
This law clarifies that trademark owners (franchisors) are not automatically considered employers of the staff working for licensed companies (franchisees). This applies to federal wage and labor laws. The goal is to allow franchisors to enforce brand quality standards without incurring liability for the local franchisee's employment decisions.
Key points
Brand owners can require quality training and standards to protect goodwill without being classified as a "joint employer" of the franchisee's staff.
The change makes it harder for employees of local franchises to bring labor disputes or lawsuits against the main brand owner regarding wages or working conditions (under NLRA and FLSA).
Status:
Expired
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