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119-s-3525119th CongressWALLET

American Franchise Act

Sponsored By: Senator Marshall, Roger [R-KS]

In Committee

Summary

Creates a uniform national test that limits when a franchisor can be treated as a joint employer. This bill would set a clear, technology neutral standard for when a franchisor has 'substantial direct and immediate control' over essential terms of a franchisee's employees and apply that test under both the National Labor Relations Act and the Fair Labor Standards Act.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

When franchisors count as employers

This bill would set a clear national test for when a franchisor can be treated as a joint employer of a franchisee's workers. A franchisor would be a joint employer only if it regularly and directly controls one or more essential job terms: wages, benefits, hours, hiring, firing, discipline, supervision, or direction. The bill would define "substantial direct and immediate control" to mean a regular or continuous consequential effect and would exclude sporadic, isolated, de minimis, or routine arm's-length interactions. The bill would use federal franchising definitions (including 16 C.F.R. §436.1 and Petroleum Marketing Practices Act terms) and would make the FLSA test match the NLRA franchising test.

No retroactive effect on cases

This bill would not apply to any proceeding that was started before the date of enactment. If you or your employer already have a labor or FLSA case pending, the old legal standards would still apply to that case. New cases filed after enactment would follow the bill's new joint-employer rules.

Sponsors & CoSponsors

Sponsor

Marshall, Roger [R-KS]

KS • R

Cosponsors

  • Sen. Tuberville, Tommy [R-AL]

    AL • R

    Sponsored 9/24/2026

  • Sen. Husted, Jon [R-OH]

    OH • R

    Sponsored 9/24/2026

  • Sen. Paul, Rand [R-KY]

    KY • R

    Sponsored 9/24/2026

  • Sen. Banks, Jim [R-IN]

    IN • R

    Sponsored 9/24/2026

  • Sen. Britt, Katie Boyd [R-AL]

    AL • R

    Sponsored 9/24/2026

  • Sen. Armstrong, Alan [R-OK]

    OK • R

    Sponsored 9/24/2026

  • Sen. Budd, Ted [R-NC]

    NC • R

    Sponsored 9/24/2026

  • Sen. King, Angus S., Jr. [I-ME]

    ME • I

    Sponsored 12/17/2025

  • Sen. Lankford, James [R-OK]

    OK • R

    Sponsored 12/17/2025

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 12/17/2025

  • Sen. Collins, Susan M. [R-ME]

    ME • R

    Sponsored 12/17/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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