New Hampshire: Franchisors are the Not Employers of its Franchisees/Franchisees’ Employees

APPLIES TO

All Employers with NH Employees

EFFECTIVE

July 18, 2017

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(888) 378-2456

In late July, New Hampshire Governor Jon Sununu signed Senate Bill 89, which clarifies how joint employer status is determined in reference to a franchisor/franchisee relationship.  The method of determining joint-employment status has experienced some back-and-forth since the 2015 Browning-Ferris decision – the U.S. Department of Labor initially implemented broad guidance on interpreting joint employment status, then withdrew the guidance. New Hampshire is the ninth state this year to enact a statute reducing the likelihood a franchisor may be deemed a joint employer.

Although Browning-Ferris involved a staffing agency, many business groups were concerned that the joint-employer standard of a party having “control” over the working conditions of the employee could impact franchisors.  New Hampshire’s Senate Bill 89 addresses this issue by stating that “a franchisor is only an employer if the franchisor agrees in writing to assume the role of employer or co-employer of the franchisee or the employee of the franchisee.”

 

Action Items

  1. Review the text of SB 89 here.
  2. Have franchise contracts reviewed by legal counsel for potential exposure.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

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