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American Franchise Act

H.R. 5267 Rep. Kevin Hern (R-OK-1) In committee
Bill text PDF
  1. Introduced Sep 10
  2. Committee Sep 10
  3. Passed House Next
  4. Passed Senate Not yet
  5. To President Not yet
  6. Law Not yet
Where it stands
In committee, Sep 10, 2025Next: House vote
50d ago Sep 8, 2026: Placed on the Union Calendar, Calendar No. 702.
Final votes
No roll callsNo recorded vote on this bill yet
Lobbying
9companies, 43 filings
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Member trades
20trades in the last 90 days
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Companies lobbying on this bill

9 companies
Companies by sector
Consumer & Retail 4Services 3Industrials 2
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Summary

The American Franchise Act clarifies when a franchisor can be considered a joint employer of a franchisee's employees under federal labor law, limiting such status to cases where the franchisor exercises substantial direct and immediate control over essential employment terms.

Sec. 3, Clarification of joint employment for franchising: This section amends the National Labor Relations Act and the Fair Labor Standards Act to define when a franchisor is a joint employer. A franchisor is a joint employer only if it possesses and exercises substantial direct and immediate control over one or more essential terms and conditions of employment (wages, benefits, hours, hiring, discharge, discipline, supervision, direction). The section provides detailed definitions of what constitutes direct and immediate control for each term, listing actions that do and do not count as such control. For example, setting brand standards or offering training materials does not count as supervision.

Sec. 4, Applicability: This Act and its amendments do not apply to any legal proceeding that was started before the date the Act becomes law.

Summary of the bill text as reported in House (Sep 8, 2026), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.

Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.