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Utah is joining the growing statewide bandwagon to create a bill that defines and separates franchisors from franchisees and their employees. House Bill 116 clearly establishes franchisees as the sole employer of their workers. The bill now awaits the governor's signature, which is expected soon.
State legislatures across the country have been taking up the mantle of franchise business owners and their rights. Utah's HB 116 comes in the wake of a decision by the National Labor Relations Board (NLRB) to change 50 years of federal labor law and legal precedent. The law clarifies that neither a franchisee nor a franchisee's employee shall be deemed to be an employee of the franchisor for any purpose.
"It has become clear that bipartisan agreement in states all over this country have coalesced around the issue that franchisors and franchisee s are separate entities," said IFA President & CEO Robert Cresanti. "The NLRB's decision to overturn the standard definition of joint-employer is a threat to businesses, employees, and the U.S. economy."
"We are grateful to all of the Utah Legislators for their support of the franchise business model and their willingness to stand up for small business owners," said Robert and Sydnee Evans, Master Franchise Owners of Jani-King Salt Lake City. "We celebrate the passing of HB 116 and look forward to continuing serving our local neighborhoods in the great state of Utah."