Big Chains Don’t Want To Be Considered Employers of Franchise Workers

For two years now, Jeff Hanscom has been traveling to state capitols and pitching lawmakers on a simple, if technical, idea: pass a law that says the state won’t consider the people who work at franchises — think McDonald’s cashiers or trainers at Gold’s Gym — to be employed by the franchiser.

Hanscom is a lobbyist for the International Franchise Association, a business group fighting an Obama-era definition of “employers” that could have big consequences for companies that rely on franchising, contract workers or temporary staff.

His efforts are paying off. Since 2015, 10 states have passed laws that guarantee, with some exceptions, that parent companies won’t be held responsible for franchise owners or workers under state wage and hour and antidiscrimination laws. Similar bills are currently pending in 11 other states.

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