Adds a new section (designated as section 20) to the National Labor Relations Act establishing definitions for 'direct and immediate control' and 'substantial direct and immediate control', defining 'essential terms and conditions of employment' and adopting a franchisor-specific joint-employer test (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). It also incorporates CFR and Petroleum Marketing Practices Act definitions for 'franchise', 'franchisee', and 'franchisor'.

Adds a new section (designated as section 20) to the Fair Labor Standards Act establishing that a franchisor may be a joint employer of a franchisee's employees only if the franchisor meets the NLRA section 20 franchisor joint-employer criteria, and cross-references the definitions provided in this Act.