HR5267119th CongressWALLET

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

  • Rep. Scholten, Hillary J. [D-MI-3]

    MI • D

    Sponsored 9/10/2025

  • Edwards

    NC • R

    Sponsored 9/10/2025

  • Costa

    CA • D

    Sponsored 9/10/2025

  • Rep. Alford, Mark [R-MO-4]

    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

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 9/10/2025

  • Rep. Bera, Ami [D-CA-6]

    CA • D

    Sponsored 9/10/2025

  • Gonzalez, V.

    TX • D

    Sponsored 9/10/2025

  • Rep. Mackenzie, Ryan [R-PA-7]

    PA • R

    Sponsored 9/10/2025

  • Rep. Meuser, Daniel [R-PA-9]

    PA • R

    Sponsored 9/15/2025

  • Rep. Carter, Earl L. "Buddy" [R-GA-1]

    GA • R

    Sponsored 9/15/2025

  • Kiley (CA)

    CA • I

    Sponsored 9/16/2025

  • Bean (FL)

    FL • R

    Sponsored 9/16/2025

  • Rep. Harrigan, Pat [R-NC-10]

    NC • R

    Sponsored 9/16/2025

  • Rep. Williams, Roger [R-TX-25]

    TX • R

    Sponsored 9/18/2025

  • Rep. Carter, Troy A. [D-LA-2]

    LA • D

    Sponsored 9/18/2025

  • Rep. Van Orden, Derrick [R-WI-3]

    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

  • Rep. Bice, Stephanie I. [R-OK-5]

    OK • R

    Sponsored 9/26/2025

  • Rep. Foxx, Virginia [R-NC-5]

    NC • R

    Sponsored 9/26/2025

  • Rep. Baumgartner, Michael [R-WA-5]

    WA • R

    Sponsored 9/26/2025

  • Kustoff

    TN • R

    Sponsored 9/26/2025

  • Rep. Olszewski, Johnny [D-MD-2]

    MD • D

    Sponsored 9/26/2025

  • Schmidt

    KS • R

    Sponsored 10/8/2025

  • Rep. Fong, Vince [R-CA-20]

    CA • R

    Sponsored 10/8/2025

  • Rep. Gottheimer, Josh [D-NJ-5]

    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

  • Rep. Grothman, Glenn [R-WI-6]

    WI • R

    Sponsored 10/21/2025

  • Rep. Harder, Josh [D-CA-9]

    CA • D

    Sponsored 10/21/2025

  • Rep. Fleischmann, Charles J. "Chuck" [R-TN-3]

    TN • R

    Sponsored 11/7/2025

  • Rep. Yakym, Rudy [R-IN-2]

    IN • R

    Sponsored 11/7/2025

  • McGuire

    VA • R

    Sponsored 11/17/2025

  • Rep. Carey, Mike [R-OH-15]

    OH • R

    Sponsored 11/18/2025

  • Kelly (PA)

    PA • R

    Sponsored 11/19/2025

  • Rep. Thompson, Glenn [R-PA-15]

    PA • R

    Sponsored 11/19/2025

  • Rep. Smucker, Lloyd [R-PA-11]

    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

  • Rep. Moolenaar, John R. [R-MI-2]

    MI • R

    Sponsored 11/20/2025

  • Rep. Taylor, David J. [R-OH-2]

    OH • R

    Sponsored 12/1/2025

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 12/1/2025

  • Rep. Hinson, Ashley [R-IA-2]

    IA • R

    Sponsored 12/3/2025

  • Rep. Fallon, Pat [R-TX-4]

    TX • R

    Sponsored 12/3/2025

  • Stauber

    MN • R

    Sponsored 12/3/2025

  • Rep. Cline, Ben [R-VA-6]

    VA • R

    Sponsored 12/9/2025

  • Rep. Miller, Mary E. [R-IL-15]

    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

  • Rep. Rouzer, David [R-NC-7]

    NC • R

    Sponsored 12/9/2025

  • Rep. Finstad, Brad [R-MN-1]

    MN • R

    Sponsored 12/10/2025

  • Jack

    GA • R

    Sponsored 12/10/2025

  • Rep. Owens, Burgess [R-UT-4]

    UT • R

    Sponsored 12/10/2025

  • Allen

    GA • R

    Sponsored 12/10/2025

  • Rep. Strong, Dale W. [R-AL-5]

    AL • R

    Sponsored 12/11/2025

  • Rep. Valadao, David G. [R-CA-22]

    CA • R

    Sponsored 12/11/2025

  • Rep. Fine, Randy [R-FL-6]

    FL • R

    Sponsored 1/7/2026

  • Kean

    NJ • R

    Sponsored 1/13/2026

  • Rep. McCormick, Richard [R-GA-7]

    GA • R

    Sponsored 1/14/2026

  • Rep. Dunn, Neal P. [R-FL-2]

    FL • R

    Sponsored 1/14/2026

  • Rep. Rulli, Michael A. [R-OH-6]

    OH • R

    Sponsored 1/22/2026

  • Rep. Case, Ed [D-HI-1]

    HI • D

    Sponsored 1/22/2026

  • Rep. Miller, Max L. [R-OH-7]

    OH • R

    Sponsored 1/22/2026

  • Fedorchak

    ND • R

    Sponsored 1/22/2026

  • Onder

    MO • R

    Sponsored 1/30/2026

  • Rep. Patronis, Jimmy [R-FL-1]

    FL • R

    Sponsored 1/30/2026

  • Davis (IL)

    IL • D

    Sponsored 1/30/2026

  • Rep. Moore, Blake D. [R-UT-1]

    UT • R

    Sponsored 2/10/2026

  • Evans (CO)

    CO • R

    Sponsored 2/12/2026

  • Rep. Steube, W. Gregory [R-FL-17]

    FL • R

    Sponsored 2/20/2026

  • Rep. Perry, Scott [R-PA-10]

    PA • R

    Sponsored 2/20/2026

  • Rep. Veasey, Marc A. [D-TX-33]

    TX • D

    Sponsored 3/16/2026

  • Harris (NC)

    NC • R

    Sponsored 3/16/2026

  • Wittman

    VA • R

    Sponsored 3/17/2026

  • Rep. Burlison, Eric [R-MO-7]

    MO • R

    Sponsored 3/19/2026

  • Rep. Mann, Tracey [R-KS-1]

    KS • R

    Sponsored 3/24/2026

  • Rep. Bacon, Don [R-NE-2]

    NE • R

    Sponsored 3/24/2026

  • Rep. Fields, Cleo [D-LA-6]

    LA • D

    Sponsored 3/24/2026

  • Rep. Stefanik, Elise M. [R-NY-21]

    NY • R

    Sponsored 3/24/2026

  • DesJarlais

    TN • R

    Sponsored 3/24/2026

  • Rep. Gooden, Lance [R-TX-5]

    TX • R

    Sponsored 3/24/2026

  • Rep. Bergman, Jack [R-MI-1]

    MI • R

    Sponsored 3/24/2026

  • Rep. Houchin, Erin [R-IN-9]

    IN • R

    Sponsored 3/24/2026

  • Rep. Scott, Austin [R-GA-8]

    GA • R

    Sponsored 3/24/2026

  • Rep. Newhouse, Dan [R-WA-4]

    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

  • Rep. Wilson, Joe [R-SC-2]

    SC • R

    Sponsored 3/26/2026

  • Rep. Palmer, Gary J. [R-AL-6]

    AL • R

    Sponsored 3/26/2026

  • Rep. Nunn, Zachary [R-IA-3]

    IA • R

    Sponsored 3/26/2026

  • Hageman

    WY • R

    Sponsored 3/30/2026

  • Obernolte

    CA • R

    Sponsored 4/6/2026

  • Messmer

    IN • R

    Sponsored 4/6/2026

  • Rep. Letlow, Julia [R-LA-5]

    LA • R

    Sponsored 4/13/2026

  • Rep. Huizenga, Bill [R-MI-4]

    MI • R

    Sponsored 4/13/2026

  • Rep. Ezell, Mike [R-MS-4]

    MS • R

    Sponsored 4/16/2026

  • McDowell

    NC • R

    Sponsored 4/16/2026

  • Rep. Rogers, Mike D. [R-AL-3]

    AL • R

    Sponsored 4/21/2026

  • Rep. Moore, Barry [R-AL-1]

    AL • R

    Sponsored 4/21/2026

  • Rep. Flood, Mike [R-NE-1]

    NE • R

    Sponsored 4/21/2026

  • Rep. Diaz-Balart, Mario [R-FL-26]

    FL • R

    Sponsored 4/21/2026

  • Rep. Miller, Carol D. [R-WV-1]

    WV • R

    Sponsored 4/21/2026

  • Bost

    IL • R

    Sponsored 4/21/2026

  • Ciscomani

    AZ • R

    Sponsored 4/28/2026

  • Rep. Gill, Brandon [R-TX-26]

    TX • R

    Sponsored 4/29/2026

  • Womack

    AR • R

    Sponsored 5/11/2026

  • Rep. Comer, James [R-KY-1]

    KY • R

    Sponsored 5/11/2026

  • Moore (WV)

    WV • R

    Sponsored 5/11/2026

  • Haridopolos

    FL • R

    Sponsored 5/12/2026

  • Moore (NC)

    NC • R

    Sponsored 5/12/2026

Roll Call Votes

No roll call votes available for this bill.

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