{"id":340926,"date":"2025-12-12T20:40:45","date_gmt":"2025-12-12T20:40:45","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/clearing-the-fog-new-joint-employer-test-is-being-considered-for-franchisors-who-is-my-employee\/"},"modified":"2025-12-12T20:40:45","modified_gmt":"2025-12-12T20:40:45","slug":"clearing-the-fog-new-joint-employer-test-is-being-considered-for-franchisors-who-is-my-employee","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=340926","title":{"rendered":"Clearing the Fog? New Joint Employer Test Is Being Considered for Franchisors \u2013 Who Is My Employee?"},"content":{"rendered":"


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I took last week off work to visit Asheville. The first morning, we woke up at 5 am for a sunrise hike at Craggy Pinnacle, along the Blue Ridge Parkway. This was our view at the top.<\/p>\n

Fortunately, the fog burned off after an hour or so. We waited and were rewarded with some spectacular views. Our 7-month old puppy Louie was just happy there were other dogs at the top to play with. Here he is, admiring the view.<\/p>\n

The lesson, of course, is to be patient and sometime the fog will clear. (Or check the weather report?)<\/p>\n

Franchisors are hoping for the same reward, through the proposed American Franchise Act<\/a>, introduced in the House in September and now before the House Committee on Education and Workforce.<\/p>\n

The bill, which has at least some bipartisan support, would change the definition of joint employment under the NLRA and FLSA for franchisee-franchisor relationships.<\/p>\n

The bill would establish that a franchisor can be a joint employer only if it exercises \u201csubstantial direct and immediate control\u201d over one or more \u201cessential terms and conditions of employment of the employees of the franchisee.\u201d<\/p>\n

\u201cEssential terms and conditions of employment\u201d means wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction.<\/p>\n

To be a joint employer, the franchisor would have to control these terms with respect to individual employees. Setting baseline standards and brand guidelines would not create joint employment.<\/p>\n

The risk of joint employment liability is an ongoing concern for franchisors. The franchise business model requires a level of control to ensure brand consistency and a uniform customer experience across locations. The American Franchise Act, if passed, would help to protect the franchise model and establish clear guidelines for what level of control is needed to create a joint employment relationship.<\/p>\n

We\u2019ll see if Congress decides to lift the fog.<\/p>\n

Here\u2019s a better view from the hike:<\/p>\n

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\u00a9 2025 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.<\/em><\/p>\n

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