Bills › 88th General Assembly

SF 510Withdrawn · HF 327 became law instead · March 25, 2019

Relating to franchisor-franchisee relationships for the purposes of certain employment laws and including applicability provisions

Sponsored by the Senate Commerce (companion To Hf 327 By Committee on Commerce) Committee

Topics:Business & economyJobs & workers

Same legislation: HSB 5, SSB 1110, HF 327

Where it is now

  1. Done: IntroducedFebruary 8, 2019
  2. Skipped: SubcommitteeSkipped
  3. Done: Senate committeeMarch 6, 2019
  4. Done: Passes the SenateMarch 25, 201932–18
  5. Skipped: House committeeSkipped
  6. Done: Passes the HouseMarch 12, 201951–45
  7. Done: To the GovernorApril 8, 2019
  8. Done: Signed into lawApril 9, 2019

HF 327 became law → The same legislation passed as HF 327, so this version was set aside. Go to HF 327 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 relating to workers’ compensation, Code chapter 91A relating to wage payment collection, Code chapter 91D relating to the minimum wage, and Code chapter 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.

Full bill text · What changed before it passed1

Iowa Code it changes

Creates§216.22§85.55§91A.15§96.36

Amends§91D.1

How the Code works2

Lobbying

3 for · 9 against · 16 undecided · Who →

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