PRINTER'S NO. 3582
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2446
Session of
2018
INTRODUCED BY STEPHENS, MILLARD, GODSHALL AND TOPPER,
MAY 30, 2018
REFERRED TO COMMITTEE ON COMMERCE, MAY 30, 2018
AN ACT
Defining the employment relationship between franchisors and
franchisees.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Franchisor-
Franchisee Employment Relationship Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicable labor and employment laws." As follows:
(1) The act of June 2, 1915 (P.L.736, No.338), known as
the Workers' Compensation Act.
(2) The act of December 5, 1936 (2nd Sp.Sess., 1937
P.L.2897, No.1), known as the Unemployment Compensation Law.
(3) The act of October 27, 1955 (P.L.744, No.222), known
as the Pennsylvania Human Relations Act.
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(4) The act of July 14, 1961 (P.L.637, No.329), known as
the Wage Payment and Collection Law.
(5) The act of January 17, 1968 (P.L.11, No.5), known as
The Minimum Wage Act of 1968.
"Franchise." As defined in 16 CFR 436.1 (relating to
definitions).
"Franchisee." As defined in 16 CFR 436.1.
"Franchisor." As defined in 16 CFR 436.1.
Section 3. Employment relationship defined.
(a) General rule.--Except as specifically provided in the
franchise agreement between a franchisor and franchisee, for
purposes of applicable labor and employment laws, a franchisor
is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's employees.
(b) Exception.--With respect to a specific claim for relief
under this act made by a franchisee or a franchisee's employee,
this section does not apply to a franchisor who has been found
by a court of competent jurisdiction in this Commonwealth to
have exercised 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.
Section 4. Applicability.
This act applies only to the liability of a franchisor based
on conduct occurring on or after the effective date of this
section.
Section 5. Effective date.
This act shall take effect in 60 days.
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