LANSING, MI (WTVB) – Legislation sponsored by Rep. Eric Leutheuser, R-Hillsdale, clarifying the application of employment rules to franchisor/franchisees was approved by the state House on Wednesday.
House Bill 5070, which amended the Michigan Occupational Safety and Health Act, clarifies that the owner of a franchise is the part best responsible for the safety of its employees. The bill first passed through the House Committee on Commerce and Trade, where Rep. Leutheuser testified in support of the bill.
“Clearly, to ensure safety, one should have the highest accountability possible,” said Rep. Leutheuser. “No one is more accountable than a person standing right in front of you. It shouldn’t be the franchisor, which could be headquartered thousands of miles away. That is why this bill makes sense.”
The legislation was prompted by a National Labor Relations Board (NLRB) decision in August 2015, which expanded the definition of “employer” under the National Labor Relations Act and classified certain businesses as part of a franchise as a “joint-employer.”
“That was a new and confusing interpretation of the franchisee/franchisor relationship,” said Rep. Leutheuser. “We want to ensure our long-held understanding remains in place so franchise owners and small businesses can continue to thrive in Michigan’s economy.”
HB 5070 was part of a six-bill package passed by the House membership Wednesday.
