The American Franchise Act aims to clarify the relationship between franchisors and franchisees, particularly regarding joint employment status.
The American Franchise Act seeks to preserve the franchise business model by clarifying the conditions under which a franchisor can be considered a joint employer of a franchisee's employees. The Act amends the National Labor Relations Act to define direct and immediate control over essential terms and conditions of employment, such as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction. It specifies that a franchisor may be considered a joint employer only if it exercises substantial direct and immediate control over these terms.
Included in complete analysis
- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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