American Franchise Act
Sponsored By: Representative Hern (OK)
Introduced
Summary
Limits when a franchisor can be treated as a joint employer by tying joint-employer status to having substantial, direct, and immediate control over essential employment terms. The bill would add precise definitions to the National Labor Relations Act and the Fair Labor Standards Act and list eight specific control categories such as wages, hiring, supervision, and hours.
Show full summary
- Workers at franchised locations: The bill would make it harder to treat a franchisor as a joint employer unless the franchisor regularly exercises real decision making over essential terms. This affects who can be held responsible under labor and wage laws.
- Franchisors: The bill would narrow exposure to joint-employer liability by requiring proof of substantial direct and immediate control rather than sporadic or minor influence.
- Franchisees: The bill would reinforce that day-to-day employment decisions generally remain the franchisee's responsibility unless the franchisor meets the control test.
- Labor organizations and enforcement agencies: The bill would limit when a franchisor can be a bargaining or enforcement target by applying the new control framework.
- Pending cases: The bill would not apply to proceedings begun before enactment.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
New joint-employer rules for franchises
This bill would set one test for when a franchisor counts as a joint employer. A franchisor would count only if it has and uses substantial, direct, and immediate control over key work terms like wages, benefits, hours, hiring, firing, discipline, supervision, or direction. One‑off or minor actions would not count. The same test would apply in labor relations cases and in wage‑and‑hour cases. The bill would use the FTC franchise definitions in 16 C.F.R. 436.1 as of enactment. These rules would take effect upon enactment.
No retroactive changes to pending cases
This bill would not apply to cases that started before enactment. Ongoing NLRA or FLSA cases would stay under the old rules. This limit would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Hern (OK)
OK • R
Cosponsors
Davis (NC)
NC • D
Sponsored 9/10/2025
Van Duyne
TX • R
Sponsored 9/10/2025
Scholten
MI • D
Sponsored 9/10/2025
Edwards
NC • R
Sponsored 9/10/2025
Costa
CA • D
Sponsored 9/10/2025
Alford
MO • R
Sponsored 9/10/2025
Gray
CA • D
Sponsored 9/10/2025
Pfluger
TX • R
Sponsored 9/10/2025
Cuellar
TX • D
Sponsored 9/10/2025
Moran
TX • R
Sponsored 9/10/2025
Bera
CA • D
Sponsored 9/10/2025
Gonzalez, V.
TX • D
Sponsored 9/10/2025
Mackenzie
PA • R
Sponsored 9/10/2025
Meuser
PA • R
Sponsored 9/15/2025
Carter (GA)
GA • R
Sponsored 9/15/2025
Kiley (CA)
CA • R
Sponsored 9/16/2025
Bean (FL)
FL • R
Sponsored 9/16/2025
Harrigan
NC • R
Sponsored 9/16/2025
Williams (TX)
TX • R
Sponsored 9/18/2025
Carter (LA)
LA • D
Sponsored 9/18/2025
Van Orden
WI • R
Sponsored 9/18/2025
Sessions
TX • R
Sponsored 9/18/2025
Fitzgerald
WI • R
Sponsored 9/18/2025
Bentz
OR • R
Sponsored 9/18/2025
Bice
OK • R
Sponsored 9/26/2025
Foxx
NC • R
Sponsored 9/26/2025
Baumgartner
WA • R
Sponsored 9/26/2025
Kustoff
TN • R
Sponsored 9/26/2025
Olszewski
MD • D
Sponsored 9/26/2025
Schmidt
KS • R
Sponsored 10/8/2025
Fong
CA • R
Sponsored 10/8/2025
Gottheimer
NJ • D
Sponsored 10/8/2025
Cole
OK • R
Sponsored 10/8/2025
Peters
CA • D
Sponsored 10/21/2025
Barr
KY • R
Sponsored 10/21/2025
Grothman
WI • R
Sponsored 10/21/2025
Harder (CA)
CA • D
Sponsored 10/21/2025
Fleischmann
TN • R
Sponsored 11/7/2025
Yakym
IN • R
Sponsored 11/7/2025
McGuire
VA • R
Sponsored 11/17/2025
Carey
OH • R
Sponsored 11/18/2025
Kelly (PA)
PA • R
Sponsored 11/19/2025
Thompson (PA)
PA • R
Sponsored 11/19/2025
Smucker
PA • R
Sponsored 11/19/2025
Wied
WI • R
Sponsored 11/19/2025
Amodei (NV)
NV • R
Sponsored 11/19/2025
Feenstra
IA • R
Sponsored 11/19/2025
Del. King-Hinds, Kimberlyn [R-MP-At Large]
MP • R
Sponsored 11/19/2025
Moolenaar
MI • R
Sponsored 11/20/2025
Taylor
OH • R
Sponsored 12/1/2025
Tenney
NY • R
Sponsored 12/1/2025
Hinson
IA • R
Sponsored 12/3/2025
Fallon
TX • R
Sponsored 12/3/2025
Stauber
MN • R
Sponsored 12/3/2025
Cline
VA • R
Sponsored 12/9/2025
Miller (IL)
IL • R
Sponsored 12/9/2025
Rutherford
FL • R
Sponsored 12/9/2025
Aderholt
AL • R
Sponsored 12/9/2025
Webster (FL)
FL • R
Sponsored 12/9/2025
Rouzer
NC • R
Sponsored 12/9/2025
Finstad
MN • R
Sponsored 12/10/2025
Jack
GA • R
Sponsored 12/10/2025
Owens
UT • R
Sponsored 12/10/2025
Allen
GA • R
Sponsored 12/10/2025
Strong
AL • R
Sponsored 12/11/2025
Valadao
CA • R
Sponsored 12/11/2025
Fine
FL • R
Sponsored 1/7/2026
Kean
NJ • R
Sponsored 1/13/2026
McCormick
GA • R
Sponsored 1/14/2026
Dunn (FL)
FL • R
Sponsored 1/14/2026
Rulli
OH • R
Sponsored 1/22/2026
Case
HI • D
Sponsored 1/22/2026
Miller (OH)
OH • R
Sponsored 1/22/2026
Fedorchak
ND • R
Sponsored 1/22/2026
Onder
MO • R
Sponsored 1/30/2026
Patronis
FL • R
Sponsored 1/30/2026
Davis (IL)
IL • D
Sponsored 1/30/2026
Moore (UT)
UT • R
Sponsored 2/10/2026
Evans (CO)
CO • R
Sponsored 2/12/2026
Steube
FL • R
Sponsored 2/20/2026
Perry
PA • R
Sponsored 2/20/2026
Veasey
TX • D
Sponsored 3/16/2026
Harris (NC)
NC • R
Sponsored 3/16/2026
Wittman
VA • R
Sponsored 3/17/2026
Burlison
MO • R
Sponsored 3/19/2026
Mann
KS • R
Sponsored 3/24/2026
Bacon
NE • R
Sponsored 3/24/2026
Fields
LA • D
Sponsored 3/24/2026
Stefanik
NY • R
Sponsored 3/24/2026
DesJarlais
TN • R
Sponsored 3/24/2026
Gooden
TX • R
Sponsored 3/24/2026
Bergman
MI • R
Sponsored 3/24/2026
Houchin
IN • R
Sponsored 3/24/2026
Scott, Austin
GA • R
Sponsored 3/24/2026
Newhouse
WA • R
Sponsored 3/24/2026
Timmons
SC • R
Sponsored 3/26/2026
Johnson (SD)
SD • R
Sponsored 3/26/2026
Estes
KS • R
Sponsored 3/26/2026
Kelly (MS)
MS • R
Sponsored 3/26/2026
LaHood
IL • R
Sponsored 3/26/2026
Wilson (SC)
SC • R
Sponsored 3/26/2026
Palmer
AL • R
Sponsored 3/26/2026
Nunn (IA)
IA • R
Sponsored 3/26/2026
Hageman
WY • R
Sponsored 3/30/2026
Roll Call Votes
No roll call votes available for this bill.
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