summary
Introduced
09/10/2025
09/10/2025
In Committee
09/10/2025
09/10/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
A BILL To preserve the franchise business model.
AI Summary
This bill aims to preserve the franchise business model by clarifying the legal definition of joint employment in franchise relationships. The bill defines a franchise as a commercial relationship where a franchisee operates an independent business using a franchisor's system, trademarks, and operational standards. Recognizing the significant economic impact of franchises (approximately $825 billion in economic output and 8.4 million workers in 2022), the bill seeks to protect franchisees' independence while preventing overly broad interpretations of joint employer liability. It amends the National Labor Relations Act and Fair Labor Standards Act to establish that a franchisor can only be considered a joint employer if they exercise "substantial direct and immediate control" over essential employment terms like wages, benefits, hiring, and supervision. The bill carefully defines what constitutes such control, explicitly stating that routine brand standards, training materials, and general business recommendations do not automatically create a joint employment relationship. Importantly, the bill's provisions will only apply to legal proceedings commenced after its enactment, ensuring it does not retroactively impact existing cases. The overall intent is to provide legal clarity that protects the traditional franchise business model and reduces potential legal risks for franchisors.
Committee Categories
Education
Sponsors (82)
Kevin Hern (R)*,
Robert Aderholt (R),
Mark Alford (R),
Rick Allen (R),
Mark Amodei (R),
Andy Barr (R),
Michael Baumgartner (R),
Aaron Bean (R),
Cliff Bentz (R),
Ami Bera (D),
Stephanie Bice (R),
Mike Carey (R),
Buddy Carter (R),
Troy Carter (D),
Ed Case (D),
Ben Cline (R),
Tom Cole (R),
Jim Costa (D),
Henry Cuellar (D),
Danny Davis (D),
Don Davis (D),
Neal Dunn (R),
Chuck Edwards (R),
Gabe Evans (R),
Pat Fallon (R),
Julie Fedorchak (R),
Randy Feenstra (R),
Randy Fine (R),
Brad Finstad (R),
Scott Fitzgerald (R),
Chuck Fleischmann (R),
Vince Fong (R),
Virginia Foxx (R),
Vicente Gonzalez (D),
Josh Gottheimer (D),
Adam Gray (D),
Glenn Grothman (R),
Josh Harder (D),
Pat Harrigan (R),
Ashley Hinson (R),
Brian Jack (R),
Tom Kean (R),
Mike Kelly (R),
Kevin Kiley (R),
Kim King (R),
David Kustoff (R),
Ryan Mackenzie (R),
Richard McCormick (R),
John McGuire (R),
Dan Meuser (R),
Mary Miller (R),
Max Miller (R),
John Moolenaar (R),
Blake Moore (R),
Nathaniel Moran (R),
Johnny Olszewski (D),
Robert Onder (R),
Burgess Owens (R),
Jimmy Patronis (R),
Scott Perry (R),
Scott Peters (D),
August Pfluger (R),
David Rouzer (R),
Michael Rulli (R),
John Rutherford (R),
Derek Schmidt (R),
Hillary Scholten (D),
Pete Sessions (R),
Lloyd Smucker (R),
Pete Stauber (R),
Greg Steube (R),
Dale Strong (R),
David Taylor (R),
Claudia Tenney (R),
G.T. Thompson (R),
David Valadao (R),
Beth Van Duyne (R),
Derrick Van Orden (R),
Daniel Webster (R),
Tony Wied (R),
Roger Williams (R),
Rudy Yakym (R),
Last Action
Referred to the House Committee on Education and Workforce. (on 09/10/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/5267/all-info |
| BillText | https://www.congress.gov/119/bills/hr5267/BILLS-119hr5267ih.pdf |
Loading...