American Franchise Act Advances Toward House Floor Vote

The U.S. House Committee on Education and Workforce reported H.R. 5267, the American Franchise Act, with an amendment on Sept. 8. The measure was committed to the Committee of the Whole House on the State of the Union and ordered printed, clearing another procedural step before it can be considered by the full House.

The legislation would amend the National Labor Relations Act and the Fair Labor Standards Act to define a franchisor as a joint employer only when it exercises substantial, direct and immediate control over a franchisee's wages, hiring, discipline and other essential employment terms. Supporters say the measure would establish a federal standard after years of changes in how the National Labor Relations Board has defined joint-employer liability.

Rep. Kevin Hern, R-Okla., introduced the bill in September 2025. Rep. Don Davis, D-N.C., is the bill's lead Democratic sponsor. More than 140 House members have since signed on as cosponsors.

The committee vote in July split along party lines, 18 to 15, with two Democratic amendments on direct versus indirect control rejected on the same lines. The House report landed just before the International Franchise Association's Sept. 14-16 Advocacy Summit in Washington, where franchisees, franchisors and suppliers met with lawmakers to press for a floor vote.

For franchisors, the issue is how the federal joint-employer standard would apply to the relationship between a brand and its franchisees. The bill specifically addresses direct control over employment terms, including wages, hiring and discipline. It would still need to pass the House and Senate and be signed by the president before becoming law.

Read the full report here.

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