2015 House Bill 5072 / 2016 Public Act 19

Clarify franchised business employee status

Introduced in the House

Nov. 10, 2015

Introduced by Rep. Nancy Jenkins (R-57)

To establish that for purposes of enforcing state minimum wage mandates, the actual owner of a business franchise rather than the franchisor is considered the sole employer of the workers to whom he or she provides a benefit plan or pays wages, except as otherwise specified in the franchise agreement, or as prohibited by law. See also House Bill 4901 and Senate Bill 492.

Referred to the Committee on Commerce and Trade

Dec. 8, 2015

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Dec. 16, 2015

Passed in the House 60 to 46 (details)

Received in the Senate

Jan. 13, 2016

Referred to the Committee on Commerce

Feb. 4, 2016

Reported without amendment

With the recommendation that the bill pass.

Feb. 11, 2016

Amendment offered by Sen. Curtis Hertel (D-23)

To establish that the bill would not apply if appointees to the National Labor Relations Board define the employees of all franchised businesses as actually being employed by the franchisor (which they have done).

The amendment failed 11 to 26 (details)

Passed in the Senate 26 to 11 (details)

To establish that for purposes of enforcing state minimum wage mandates, the actual owner of a business franchise rather than the franchisor is considered the sole employer of the workers to whom he or she provides a benefit plan or pays wages, except as otherwise specified in the franchise agreement, or as prohibited by law. See also House Bill 4901 and Senate Bill 492.

Signed by Gov. Rick Snyder

Feb. 23, 2016