Exclude certain franchisors from being considered employers under certain labor laws

Summary

The proposal defines franchisor, franchisee and franchise, then says franchisors are not employers of franchisees or their workers unless they directly control key employment terms such as wages, benefits, schedules, hiring, discipline, or job instructions. It amends state statutes to reflect this narrower definition, affecting workers’ compensation and unemployment insurance coverage. The change aims to clarify liability for franchised businesses.

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