Lawmakers Introduced a Bill to Make the Current Version of the Joint Employer Rule Permanent. Here's What It Means for the U.S. Franchise Industry.
Carl Stoffers
created: July 15, 2025, 5 p.m. | updated: July 16, 2025, 2:14 p.m.
Franchise owners could soon see relief from one of the industry's most contentious legal issues: the joint employer standard.
The Save Local Business Act, sponsored by Rep. James Comer (R-KY), would lock in the current, narrower joint employer definition that requires "direct and immediate control" over essential terms of employment.
Under a narrow joint employer standard, franchisees are considered independent operators responsible for hiring, firing, scheduling and supervising their own employees.
Previous attempts to expand the joint employer standard have had measurable economic consequences.
Supporters of the new bill argue that locking in a clear, consistent joint employer definition would restore confidence for franchise operators, investors and employees alike.
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