New Bill Could Impact Cleaning Franchisers

A bill being explored by the U.S. House of Representatives would officially decide when two businesses can be a joint employer. 

The Save Local Business Act would solidify the current joint employer definition requiring “direct and immediate control” over essential terms of employment, reports Entrepreneur.  Sponsored by Rep. James Comer (R-KY), the bill would be of benefit to owners of cleaning franchises because it provides greater legal clarity. 

The current, narrow joint employer standard considers franchisees to be independent operators who are responsible for hiring, scheduling, supervising, and firing their own employees. Entrepreneur explains that broader definitions, like those proposed in recent years, could hold franchisors liable for having the ability to influence choices like hiring and firing, even if they haven’t wielded that power. The Save Local Business Act would eliminate this concern. 

For more, read the original report here.