Franchiser Liability Protections Unveiled in Bipartisan Proposal

Aug. 1, 2019, 8:28 PM

A bipartisan group of senators wants to use trademark legislation to protect franchisers from responsibility for wage-and-hour violations against franchisee employees and shield them from having to collectively bargain with those workers.

Lawmakers Aug. 1 introduced a bill that would allow franchisers to impose certain brand standards on their franchisees without those controls begin used as proof that they are “joint employers” of franchisee workers. The Trademark Licensing Protection Act of 2019 comes as the Labor Department and National Labor Relations Board are pushing regulations to limit shared responsibility for franchisers and businesses in staffing and other contract arrangements.

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