American Franchise Act

The American Franchise Act clarifies that a franchisor is not considered a joint employer of a franchisee’s employees unless it exercises substantial direct and immediate control over essential terms of employment such as wages, benefits, hours, hiring, discharge, discipline, supervision, or direction. It amends the National Labor Relations Act and the Fair Labor Standards Act to define joint employment narrowly, protecting the franchise business model from liability based on inherent franchisor controls like brand standards or operational guidelines. The bill applies only to proceedings commenced after its enactment and does not affect ongoing cases. It aims to preserve franchising by…

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