H.R. 5267

Limits when franchisors are joint employers

Sets a national test so a brand company counts as a joint employer of a franchise's workers only if it has substantial direct and immediate control over their pay, hours, or other core job terms.

  • Covers wages, benefits, hours, hiring, firing, discipline, supervision and direction
  • Setting store hours, brand standards, or minimum staffing levels would not count as control
  • Recommending staffing changes or flagging a worker's misconduct would not count either
  • Applies to labor law and wage law, but not to cases already underway before it passes

Cleared committee · Awaiting a floor vote

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