Franchise Legislation Heads to Governor’s Desk

March 28, 2019

On Monday afternoon, the Senate approved HF 327, which is ABI-supported legislation that seeks to clarify the franchisor/franchisee relationship with regard to employment relationships. The bill, which passed the upper chamber 32-18, makes clear that a franchisor shall not be considered to be an employer of a franchisee or of an employee of a franchisee unless certain conditions apply. The legislation stems from a 2015 National Labor Relations Board ruling that expanded the definition of the joint employer standard and created uncertainty surrounding the franchisor/franchisee relationship. The bill was previously approved by the House 51-45 and now heads to Gov. Reynolds for her consideration.