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

The American Franchise Act seeks to preserve the franchise business model by clarifying the conditions under which a franchisor may be considered a joint employer of a franchisee's employees. It amends the National Labor Relations Act and the Fair Labor Standards Act of 1938 to define when a franchisor exercises direct and immediate control over essential terms and conditions of employment, such as wages, hiring, discharge, and supervision.

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

The American Franchise Act seeks to preserve the franchise business model by clarifying the conditions under which a franchisor may be considered a joint employer of a franchisee's employees. It amends the National Labor Relations Act and the Fair Labor Standards Act of 1938 to define when a franchisor exercises direct and immediate control over essential terms and conditions of employment, such as wages, hiring, discharge, and supervision.