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Employer Definition Clarify Franchisee Status

Concerning clarification of the construction of the definition of "employer" dealing with the employer-employee relationship to include a requirement that an employer must exert a level of control over an employee, and, in connection therewith, providing that a franchisor is not an employer of a franchisee or a franchisee's employees.
2016 Regular Session
Business & Economic Development
Labor & Employment
Bill Summary

The bill clarifies that the definition of 'employer' only includes a person that possesses authority to control an employee's terms and conditions of employment and actually exercises that authority directly. The bill specifies that a franchisor is not considered an employer of a franchisee's employees unless a court finds that a franchisor exercises a type or degree of control over the franchisee or the franchisee's employees not customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks and brand.

(Note: This summary applies to this bill as introduced.)




Bill Text


Sponsor Type Legislators
Prime Sponsor

Rep. B. DelGrosso



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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details