Signed into law on March 1, Wisconsin Senate Bill 422 clarifies that a franchisor is not the employer of a franchisee’s employees under several areas of state labor and employment law. Specifically, the law amends the definition of an employer for purposes of unemployment insurance, worker’s compensation, minimum wage and hour laws, and fair employment laws. Under Senate Bill 422 (2015 Wisconsin Act 203), a franchisor can only be considered the employer of a franchisee if:
- the franchisor has agreed in writing to assume that role; or
- the franchisor has exercised a 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 or brands.”
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