House committee gives thumbs-up to small franchisee protection bill
After passing in the Senate in February, a Senate bill to clarify the employment relationship in the franchise model got approval from a house committee on April 9.
Sen. Bob Onder’s Senate Bill 38 addresses a 2015 decision by the National Labor Relations Board which created legal peril for small local companies by replacing a clear, bright-line joint employer definition with a vague, multi-factored standard. Research revealed that change has cost businesses across the U.S. between $17–33.3 billion annually and killed up to 376,000 potential jobs.
“Several other states have adopted laws that protect the independence of small franchisees,” said Matt Panik, Missouri Chamber vice president of governmental affairs. “This bill seeks to bring similar legislation to our state, and the Missouri Chamber will continue to advocate for its final passage.”