Legislation seeks to modify employment rules for franchisees

Legislation seeks to modify employment rules for franchisees

LANSING — Four bills that change the way employment rules are applied to franchise businesses have passed through the Michigan Legislature.

According to a House Fiscal Agency analysis, the House bills – along with two already signed Senate bills – would amend various acts to define franchisees as sole employers of workers for whom they provide benefit plans or pay wages. One of the bills would also replace the Department of Labor with the Department of Licensing and Regulatory Affairs as the entity in charge of various employment issues.

The bills are a response to a recent National Labor Relations Board ruling that franchisors and franchisees may be considered joint-employers.