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Bipartisan Joint Employer Bill Offers Protection for Franchises

A bipartisan pair of lawmakers has introduced legislation to largely shield franchises from joint employer liability, a rare alliance between both sides of the aisle on a highly contested legal issue that could impact businesses in many facets of the economy.

“The American Franchise Act,” co-sponsored by Reps. Kevin Hern (R-Okla.) and Don Davis (D-N.C.), would make it harder for fast-food giants like McDonald’s Corp. and Wendy’s Co. to be deemed jointly responsible for minimum wage requirements or collective bargaining obligations of franchisees operating under their name.

The issue also presents high stakes for industries that rely on contractors, like trucking, nursing, and construction.

The legislation seeks to add language to both the Fair Labor Standards Act and the National Labor Relations Act stating that a franchisor must possess and exercise “substantial direct and immediate control” over the working conditions of a franchisee’s employees.

Neither law defines “joint employment” or “joint employer,” and labor enforcement agencies have flip-flopped on their interpretations depending on which administration is in power.

Democrats have favored a stricter standard that considers a company’s unexercised or indirect control over working conditions to establish a joint employer relationship. Republicans, businesses, and the Trump administration prefer an approach that requires businesses to have direct control.

The measure is backed by the International Franchise Association, which says the “narrowly tailored” change would provide much needed clarity for the business community while still ensuring federal agencies can enforce the law.

The IFA says the bill’s strict focus on franchising arrangements could make it easier to pass and more palatable for Democrats to sign onto than other bills that would address joint employment status across all industries and working arrangements.

The DOL has also indicated it plans to issue a rulemaking to clarify joint employer status under the FLSA by December.

Bipartisan Joint Employer Bill Offers Protection for Franchises

A bipartisan pair of lawmakers has introduced legislation to largely shield franchises from joint employer liability, a rare alliance between both sides of the aisle on a highly contested legal issue that could impact businesses in many facets of the economy.

“The American Franchise Act,” co-sponsored by Reps. Kevin Hern (R-Okla.) and Don Davis (D-N.C.), would make it harder for fast-food giants like McDonald’s Corp. and Wendy’s Co. to be deemed jointly responsible for minimum wage requirements or collective bargaining obligations of franchisees operating under their name.

The issue also presents high stakes for industries that rely on contractors, like trucking, nursing, and construction.

The legislation seeks to add language to both the Fair Labor Standards Act and the National Labor Relations Act stating that a franchisor must possess and exercise “substantial direct and immediate control” over the working conditions of a franchisee’s employees.

Neither law defines “joint employment” or “joint employer,” and labor enforcement agencies have flip-flopped on their interpretations depending on which administration is in power.

Democrats have favored a stricter standard that considers a company’s unexercised or indirect control over working conditions to establish a joint employer relationship. Republicans, businesses, and the Trump administration prefer an approach that requires businesses to have direct control.

The measure is backed by the International Franchise Association, which says the “narrowly tailored” change would provide much needed clarity for the business community while still ensuring federal agencies can enforce the law.

The IFA says the bill’s strict focus on franchising arrangements could make it easier to pass and more palatable for Democrats to sign onto than other bills that would address joint employment status across all industries and working arrangements.

The DOL has also indicated it plans to issue a rulemaking to clarify joint employer status under the FLSA by December.

Bipartisan Joint Employer Bill Offers Protection for Franchises

A bipartisan pair of lawmakers has introduced legislation to largely shield franchises from joint employer liability, a rare alliance between both sides of the aisle on a highly contested legal issue that could impact businesses in many facets of the economy.

“The American Franchise Act,” co-sponsored by Reps. Kevin Hern (R-Okla.) and Don Davis (D-N.C.), would make it harder for fast-food giants like McDonald’s Corp. and Wendy’s Co. to be deemed jointly responsible for minimum wage requirements or collective bargaining obligations of franchisees operating under their name.

The issue also presents high stakes for industries that rely on contractors, like trucking, nursing, and construction.

The legislation seeks to add language to both the Fair Labor Standards Act and the National Labor Relations Act stating that a franchisor must possess and exercise “substantial direct and immediate control” over the working conditions of a franchisee’s employees.

Neither law defines “joint employment” or “joint employer,” and labor enforcement agencies have flip-flopped on their interpretations depending on which administration is in power.

Democrats have favored a stricter standard that considers a company’s unexercised or indirect control over working conditions to establish a joint employer relationship. Republicans, businesses, and the Trump administration prefer an approach that requires businesses to have direct control.

The measure is backed by the International Franchise Association, which says the “narrowly tailored” change would provide much needed clarity for the business community while still ensuring federal agencies can enforce the law.

The IFA says the bill’s strict focus on franchising arrangements could make it easier to pass and more palatable for Democrats to sign onto than other bills that would address joint employment status across all industries and working arrangements.

The DOL has also indicated it plans to issue a rulemaking to clarify joint employer status under the FLSA by December.

Bipartisan Joint Employer Bill Offers Protection for Franchises

A bipartisan pair of lawmakers has introduced legislation to largely shield franchises from joint employer liability, a rare alliance between both sides of the aisle on a highly contested legal issue that could impact businesses in many facets of the economy.

“The American Franchise Act,” co-sponsored by Reps. Kevin Hern (R-Okla.) and Don Davis (D-N.C.), would make it harder for fast-food giants like McDonald’s Corp. and Wendy’s Co. to be deemed jointly responsible for minimum wage requirements or collective bargaining obligations of franchisees operating under their name.

The issue also presents high stakes for industries that rely on contractors, like trucking, nursing, and construction.

The legislation seeks to add language to both the Fair Labor Standards Act and the National Labor Relations Act stating that a franchisor must possess and exercise “substantial direct and immediate control” over the working conditions of a franchisee’s employees.

Neither law defines “joint employment” or “joint employer,” and labor enforcement agencies have flip-flopped on their interpretations depending on which administration is in power.

Democrats have favored a stricter standard that considers a company’s unexercised or indirect control over working conditions to establish a joint employer relationship. Republicans, businesses, and the Trump administration prefer an approach that requires businesses to have direct control.

The measure is backed by the International Franchise Association, which says the “narrowly tailored” change would provide much needed clarity for the business community while still ensuring federal agencies can enforce the law.

The IFA says the bill’s strict focus on franchising arrangements could make it easier to pass and more palatable for Democrats to sign onto than other bills that would address joint employment status across all industries and working arrangements.

The DOL has also indicated it plans to issue a rulemaking to clarify joint employer status under the FLSA by December.

Bipartisan Joint Employer Bill Offers Protection for Franchises

A bipartisan pair of lawmakers has introduced legislation to largely shield franchises from joint employer liability, a rare alliance between both sides of the aisle on a highly contested legal issue that could impact businesses in many facets of the economy.

“The American Franchise Act,” co-sponsored by Reps. Kevin Hern (R-Okla.) and Don Davis (D-N.C.), would make it harder for fast-food giants like McDonald’s Corp. and Wendy’s Co. to be deemed jointly responsible for minimum wage requirements or collective bargaining obligations of franchisees operating under their name.

The issue also presents high stakes for industries that rely on contractors, like trucking, nursing, and construction.

The legislation seeks to add language to both the Fair Labor Standards Act and the National Labor Relations Act stating that a franchisor must possess and exercise “substantial direct and immediate control” over the working conditions of a franchisee’s employees.

Neither law defines “joint employment” or “joint employer,” and labor enforcement agencies have flip-flopped on their interpretations depending on which administration is in power.

Democrats have favored a stricter standard that considers a company’s unexercised or indirect control over working conditions to establish a joint employer relationship. Republicans, businesses, and the Trump administration prefer an approach that requires businesses to have direct control.

The measure is backed by the International Franchise Association, which says the “narrowly tailored” change would provide much needed clarity for the business community while still ensuring federal agencies can enforce the law.

The IFA says the bill’s strict focus on franchising arrangements could make it easier to pass and more palatable for Democrats to sign onto than other bills that would address joint employment status across all industries and working arrangements.

The DOL has also indicated it plans to issue a rulemaking to clarify joint employer status under the FLSA by December.

Bipartisan Joint Employer Bill Offers Protection for Franchises

A bipartisan pair of lawmakers has introduced legislation to largely shield franchises from joint employer liability, a rare alliance between both sides of the aisle on a highly contested legal issue that could impact businesses in many facets of the economy.

“The American Franchise Act,” co-sponsored by Reps. Kevin Hern (R-Okla.) and Don Davis (D-N.C.), would make it harder for fast-food giants like McDonald’s Corp. and Wendy’s Co. to be deemed jointly responsible for minimum wage requirements or collective bargaining obligations of franchisees operating under their name.

The issue also presents high stakes for industries that rely on contractors, like trucking, nursing, and construction.

The legislation seeks to add language to both the Fair Labor Standards Act and the National Labor Relations Act stating that a franchisor must possess and exercise “substantial direct and immediate control” over the working conditions of a franchisee’s employees.

Neither law defines “joint employment” or “joint employer,” and labor enforcement agencies have flip-flopped on their interpretations depending on which administration is in power.

Democrats have favored a stricter standard that considers a company’s unexercised or indirect control over working conditions to establish a joint employer relationship. Republicans, businesses, and the Trump administration prefer an approach that requires businesses to have direct control.

The measure is backed by the International Franchise Association, which says the “narrowly tailored” change would provide much needed clarity for the business community while still ensuring federal agencies can enforce the law.

The IFA says the bill’s strict focus on franchising arrangements could make it easier to pass and more palatable for Democrats to sign onto than other bills that would address joint employment status across all industries and working arrangements.

The DOL has also indicated it plans to issue a rulemaking to clarify joint employer status under the FLSA by December.