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.”