H.R. 5267 · On the floor · Labor and Employment

American Franchise Act

What it does

Amends the National Labor Relations Act to define when a franchisor exercises direct and immediate control over wages, hours, hiring, discipline, and other essential terms of employment for purposes of joint employer liability.
Specifies that a franchisor does not exercise direct and immediate control over wages by permitting a franchisee to participate in the franchisor's benefits plan on an arm's-length basis.
Clarifies that establishing franchisee operating hours, minimum staffing levels, or minimal hiring and performance standards does not constitute direct and immediate control over employment conditions.
Provides that a franchisor does not exercise direct and immediate control over discharge or discipline by bringing misconduct to a franchisee's attention, expressing negative opinions, or setting minimal safety or brand-protection standards.

Sep 8, 2026: Placed on the Union Calendar, Calendar No. 702.

Committee: House Education and Workforce