S. 3525 · In committee · 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 essential employment terms, including wages, benefits, hours, hiring, discharge, discipline, supervision, and direction.
Establishes that a franchisor may be considered a joint employer only if it possesses and exercises substantial direct and immediate control over one or more essential employment terms on a regular or continuous basis, not on a sporadic or de minimis basis.
Exempts from franchisor control certain routine activities including setting operating hours, establishing minimum staffing levels, providing training materials, offering operational support, and expressing opinions about employee performance.
Applies the same joint-employer standards to the Fair Labor Standards Act of 1938 by cross-reference to the National Labor Relations Act definitions.

Mar 19, 2026: Committee on Health, Education, Labor, and Pensions. Hearings held.

Committee: Senate Health, Education, Labor, and Pensions