Clarifying when franchisors are joint employers
What the bill does
This bill changes the legal test for when a franchisor can be considered a joint employer of a franchisee's workers. Under the bill, a franchisor is a joint employer only if it actually and directly controls key parts of the job, such as wages, hiring, or firing. The bill applies to laws like the National Labor Relations Act and the Fair Labor Standards Act.
The stakes
Franchise owners and their employees are affected. The bill could make it harder for workers to hold big franchisor companies responsible for labor law violations at individual franchise locations.
- McDonald'sMCD
- SubwayQSR
- Yum! BrandsYUM
- Dunkin' BrandsDNKN
What each side says
- The bill protects the franchise business model by making clear that franchisors are not automatically joint employers just because they set brand standards.bill
- It prevents inconsistent legal rulings that create uncertainty for franchisors and franchisees.bill
- Franchisees are independent business owners who control day-to-day operations, so they should be the ones responsible for labor decisions.bill
- The bill makes it too hard to hold franchisors accountable when they actually influence working conditions, which could leave workers without protection.report
- It could allow franchisors to avoid responsibility for labor law violations at franchise locations, even when they set strict rules that affect workers.report
Each point links to its source. The views are attributed to those sources, not stated as ours.
From this bill outward
The bill
where every tie is measured fromWho paid lobbyists to work it
Direct tie1 groups · their total 2025 lobbying| Group | Issues | 2025 lobbying (all issues) | Has PAC? |
|---|---|---|---|
| MCDONALD'S CORPORATION›Named in bill | AgricultureLaborBanking | $3.4M | ✓MCPAC |
Election money, in the distance
Background · not tied to this billThe background money view appears when a bill has a recorded vote and matching sector PAC data.
Lobbying filings, contributions, and votes are public records shown side by side. The further down the chain, the further the money is from this bill. This page does not assert that money caused any vote.