Senators Marshall & King Introduce Bipartisan Legislation Codifying the Future of the Joint Employer Standard
Washington – On Wednesday, U.S. Senators Roger Marshall, M.D. (R-Kansas) and Angus King (I-Maine), introduced the American Franchise Act – a bipartisan bill that clarifies the joint employer standard and reshapes the franchising industry.
For a decade, joint employer rules have shifted between administrations, creating ambiguity and confusion for businesses everywhere. This long-awaited bill offers clarity and stability by establishing a clear and practical definition of the joint employer standard.
“The American Franchise Act marks the end of uncertainty when it comes to the joint employer standard,” said Senator Marshall. “With clear guidelines, entrepreneurs can feel empowered to venture into the franchise model and live out their American dream of owning a business.”
“Franchises are a proven pathway to entrepreneurship, especially for first-time small business owners, and contribute to local economies nationwide,” said Senator King. “The American Franchise Act strikes the right balance between protecting workers and preserving the independence of local business owners. This legislation clarifies federal law and strengthens economic opportunity without undermining the franchise model that supports millions of American jobs.”
This legislation is co-sponsored by Senators James Lankford (R-Oklahoma,) Tim Sheehy (R-Montana,) and Susan Collins (R-Maine.)
“Franchises are the heart of small businesses in America,” said Senator Lankford. “Franchises allow people to move from employee to owner and fulfill their dream of owning their own business. They are local employers and providers of goods and services under the umbrella of a larger name and brand. But the larger name does not negate the fact that they are separate small businesses. Businesses in Oklahoma and across the country deserve the peace of mind that they can franchise and maintain quality without federal interference. I look forward to the full consideration of our simple proposal so we can clarify this rule discrepancy for small businesses across the country.”
“For years, too many small business owners have faced uncertainty and shifting regulations from the federal government that make it difficult to operate. It’s critical we provide hardworking entrepreneurs with the certainty they need to succeed, and this commonsense bill does exactly that.” Said Senator Sheehy.
“The franchise model empowers entrepreneurs across the State of Maine to build businesses that create jobs and grow our local economies. However, recent regulatory changes by the NLRB have created uncertainty that threatens to take basic decision-making out of the hands of small business franchise owners,” said Senator Collins.“This bipartisan legislation, which has strong support from Maine’s small business community, would establish a clear and stable joint-employer standard, providing certainty for franchise owners, while protecting workers’ rights.”
Background:
- The American Franchise Act codifies joint employment standards by defining the essential terms and conditions of employment, and substantial direct and immediate control under the National Labor Relations Act and the Fair Labor Standards Act.
- These essential terms and conditions of employment include wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction.
The American Franchise Act has earned strong backing from a diverse coalition of national and regional organizations. Supporters include the International Franchise Association, the Health and Fitness Association, the National Association of Convenience Stores, the National Restaurant Association, the American Association of Franchisees & Dealers, the Coalition of Franchisee Associations, the Asian American Hotel Owners Association, the Nation Federation of Independent Businesses, and the American Hotel and Lodging Association.
“This is a watershed moment for both the American Franchise Act and the future of franchising, and we’re grateful to Senators Marshall and King for their steadfast leadership,” said Matt Haller, IFA President and CEO. “With a growing bipartisan coalition of support in both chambers of Congress, Congress can resolve a decade of uncertainty around the joint employer issue that has threatened franchisors and franchisees alike – providing certainty for franchising for generations to come and allowing more Americans to go into business for themselves, but not by themselves through franchise ownership.”
“The bipartisan American Franchise Act is our chance to FINALLY get the joint employer standard settled and signed into law,” said Stephen Shields, Express Employment Professionals franchise owner in Pittsburg, Kansas. “This will protect us as franchisees and franchisors, allowing us to focus on growing our businesses with greater certainty.”
Click here to read the full text of the legislation.
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Contact: Payton Fuller
