Summary

Establishes a statutory rule for when a franchisor counts as a joint employer under the National Labor Relations Act and the Fair Labor Standards Act. It defines key terms, incorporates existing federal franchise definitions, and says a franchisor is a joint employer only if it exercises "substantial direct and immediate control" over essential employment terms; the law applies prospectively only.

• Creates a single, heightened legal test for franchisor joint-employer status under both the NLRA and FLSA.
• Requires "substantial direct and immediate control" over essential employment terms (wages, benefits, hours, hiring, discharge, discipline, supervision, direction) for joint-employer liability.
• Incorporates established federal franchise definitions from 16 C.F.R. § 436.1 and the Petroleum Marketing Practices Act to define "franchise," "franchisor," and "franchisee."
• Excludes sporadic, limited, or de minimis franchisor actions from creating joint-employer status.
• Makes the FLSA joint-employer standard coterminous with the NLRA standard in this context.
• Applies only to actions and proceedings that commence after the Act’s enactment (not retroactive).
• Aims to reduce legal uncertainty and potential franchisor liability related to employment law claims.
• Shifts clearer responsibility for employment terms toward the entity that exercises sustained, consequential control.