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Updates


Virginia Introduces New Law to Clarify and Protect Franchises

WASHIGNTON, Nov. 20—International Franchise Association, the world’s largest organization representing franchise owners, applauded a new law introduced in Virginia clarifying that franchisors and franchisees are separate entities. The legislation, which came in response to the National Labor Relations Board’s (NLRB) decision to expand joint employer liability under a radical new standard, was prefiled by Delegate Chris Head (Sponsor), who along with his wife are Home Instead Senior Care franchise owners in Roanoke and Lynchburg VA. The legislature will take up the bill when they return in January.

“We have taken a critically important step in Virginia to continue to allow families in communities across Virginia to continue to own and operate their franchised businesses at the local level,” stated Head. “Now more than ever, states are recognizing the importance of defining the difference between franchisors and franchisees, as the NLRB’s effort to redefine the meaning of an employer continues to threaten the future of our these family-owned businesses.”

The newly introduced legislation would clarify that neither a franchisee nor any employee of the franchisee shall be deemed to be an employee of the franchisee's franchisor for any purpose. Virginia follows in the footsteps of Louisiana, Tennessee and Texas who have already enacted similar legislation that clearly establishes franchisees as the sole employer of their workers.

“It is heartening to see other state legislatures stand up for the family-owned franchises in their neighborhoods that are creating jobs and opportunities for workers and business owners. If Washington won’t act, we need to in order to protect Virginia’s businesses throughout our neighborhoods,” Head stated.

“This Virginia bill is important legislation to protect my ability to own and operate my own family business. I appreciate Delegate Chris Head for standing up for my business and local franchise businesses across Virginia by introducing this measure,” stated John Sims, Rainbow Station, Richmond, VA

Date: 2015-11-20

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