Bill would narrow when franchisors count as "joint employers"
Placed on the calendarH.R. 5267Latest action
Sponsor: Kevin Hern · Representative · OK
AIDecoded by AI · checked against the recordRead the official text
Official title: American Franchise Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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The American Franchise Act would make franchisors liable as joint employers only if they directly control wages, hiring, or firing.
40-second read · 4 questions answered below
What does this do?
This bill narrows the federal definition of "joint employer" so that a franchisor is only jointly liable for labor issues if it directly and substantially controls things like wages, hiring, firing, discipline, or schedules. Setting general brand standards, staffing minimums, or training materials would not count as employment control. It applies to both the National Labor Relations Act and the Fair Labor Standards Act, and does not affect cases already in progress.
Who does it affect?
It affects franchise business owners, large franchisor companies like national restaurant, hotel, and retail chains, and their employees.
Why does it matter?
Narrowing the definition would reduce large franchisor companies' legal exposure for labor practices at individually owned franchise locations, potentially making it harder for workers to hold parent companies accountable across a franchise network.
AI-drafted summary. Check it against the official text before you act on it.
Based on the “Reported in House” text of Sep 8, 2026.
Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedSep 10, 2025
- House committee
- House voteYou are here · Sep 8, 2026
- Senate
- The president's desk
Right now: it was placed on the , and the official record shows no floor action on it since. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Placed on the Union Calendar, Calendar No. 702.
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How it's being covered
Coverage of this bill from across the press. Each outlet's political lean is labeled where AllSides has rated it, and marked "Not rated" where it has not.
Newest of these articles:
hotelresource.com
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lodgingmagazine.com
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realclearmarkets.com
Not rated
Am Franchise Act Would Harm Sm BusinessApr 30, 2026
Lean labels describe the news outlet, not this bill or any party. Ratings by AllSides.