American Franchise Act

The American Franchise Act seeks to clarify when a franchisor can be considered a joint employer of a franchisee’s employees under federal labor law, specifying that joint employment only exists if the franchisor exercises substantial direct and immediate control over essential employment terms like wages, hours, hiring, or discipline. It defines such control narrowly, excluding routine brand standards, training, or operational support from constituting joint employer liability. The bill amends both the National Labor Relations Act and the Fair Labor Standards Act to apply this standard, aiming to preserve the franchise business model by limiting franchisor liability for franchisee…

No official summary is available here. This one was written by AI from the bill’s text.