Bills › 88th General Assembly
Relating to franchisor-franchisee relationships for the purposes of certain employment laws and including applicability provisions. Effective 7-1-19
Sponsored by the House Commerce Committee
Where it is now
- Done: IntroducedFebruary 8, 2019
- Skipped: SubcommitteeSkipped
- Done: House committeeMarch 12, 2019
- Done: Passes the HouseMarch 12, 201951–45
- Skipped: Senate committeeSkipped
- Done: Passes the SenateMarch 25, 201932–18
- Done: To the GovernorApril 8, 2019
- Done: Signed into lawApril 9, 2019
Signed into law What’s a funnel?
What’s in it
This bill provides that, for the purposes of certain specified employment laws, a franchisor shall not be considered to be an employer of a franchisee or of an employee of a franchisee unless at least one of two specified conditions are met. The first condition is that the franchisor has agreed in writing to be considered to be the employer of the franchisee or of the employees of the franchisee. The second condition is that the franchisor has been found by the governing state agency to have exercised a type or degree of control over the franchisee or the franchisee’s employees that is not customarily exercised by a franchisor for the purpose of protecting the franchisor’s trademarks and brand.
Read the full explanation
The affected employment laws are Code chapter 216 relating to civil rights, Code chapters 85, 86, and 87 relating to workers’ compensation, Code chapter 91A relating to wage payment collection, Code chapter 91D relating to the minimum wage, and Code chapter 96 relating to unemployment insurance. Franchisee is defined under Iowa law as a person to whom a franchise is granted, including a subfranchisor with regard to its relationship with a franchisor and a subfranchisee with regard to its relationship with a subfranchisor. Franchisor is defined under Iowa law as a person who grants a franchise or master franchise, or an affiliate of such a person, including a subfranchisor with regard to its relationship with a franchisee, except as otherwise provided by state law. The bill applies to work performed on or after the effective date of the bill.
Iowa Code it changes
Creates§216.22§85.55§91A.15§96.36
Amends§91D.1
Lobbying
3 for · 9 against · 16 undecided · Who →
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88th General Assembly