American Franchise Act aims to clarify joint employment definitions in franchising.

The American Franchise Act seeks to preserve the franchise business model by clarifying the criteria for joint employment in franchising. It amends the National Labor Relations Act and the Fair Labor Standards Act of 1938 to define when a franchisor may be considered a joint employer of a franchisee's employees. The Act specifies that a franchisor can be a joint employer only if it exercises substantial direct and immediate control over essential terms and conditions of employment, such as wages, benefits, hiring, discharge, discipline, supervision, and direction.

American Franchise Act aims to clarify joint employment definitions in franchising.

The American Franchise Act seeks to preserve the franchise business model by clarifying the criteria for joint employment in franchising. It amends the National Labor Relations Act and the Fair Labor Standards Act of 1938 to define when a franchisor may be considered a joint employer of a franchisee's employees. The Act specifies that a franchisor can be a joint employer only if it exercises substantial direct and immediate control over essential terms and conditions of employment, such as wages, benefits, hiring, discharge, discipline, supervision, and direction.