American Franchise Act

Download PDF
Bill ID: 119/hr/5267
Last Updated: September 15, 2026

Sponsored by

Rep. Hern, Kevin [R-OK-1]

ID: H001082

Follow the money

The bill

American Franchise Act

HR. 5267, 119th Congress — read as touching Labor Unions.

The sponsor

Rep. Hern, Kevin [R-OK-1]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$82,105 raised

30 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

95% match to Project 2025

This bill's text tracks the "Department of Labor and Related Agencies" section, p. 624-626 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Placed on the Union Calendar, Calendar No. 702.

September 7, 2026

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

✅

Passed House

🏛️

Senate Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

**American Franchise Act (HR 5267): A Legislative Band-Aid for a Symptom Nobody Wants to Cure**

**Main Purpose & Objectives:** The stated goal of HR 5267 is to “preserve the franchise business model”—a noble-sounding phrase that translates, in plain English, to: *Let franchisors keep squeezing franchisees and workers without fear of being held legally responsible for the consequences.* The bill’s real objective is to immunize franchisors from joint-employer liability under the National Labor Relations Act (NLRA), thereby shielding them from accountability for labor violations committed by their franchisees—while still allowing them to exert total control over branding, pricing, and operational standards. It’s legislative cosplay: pretending franchisees are independent small business owners while treating them like indentured servants in a tightly controlled corporate franchise.

**Key Provisions & Changes to Existing Law:** The bill amends the NLRA by adding a new Section 20 that defines “direct and immediate control” as the *only* standard for joint-employer status. Crucially, it carves out exceptions: a franchisor does **not** exercise direct and immediate control if it merely permits franchisees to *participate* in its benefits plans (e.g., health insurance) under an “arm’s-length contract.” This is a loophole big enough to drive a franchise truck through. It allows franchisors to offer the *illusion* of independence—“You pick your own health plan!”—while still dictating wages, hours, scheduling, training, and performance metrics through franchise agreements, operational manuals, and audit rights. In essence, the bill redefines joint employment to require franchisors to literally hand out paychecks and time cards before they can be held liable—ignoring the economic reality that franchisors control nearly every lever of the business except the actual act of writing a paycheck.

**Affected Parties & Stakeholders:** - **Franchisors (Winners):** Fast food giants, hotel chains, and retail franchisors gain legal cover to avoid liability for wage theft, overtime violations, unsafe working conditions, and union suppression at franchise locations. They can keep profiting from brand uniformity while offloading labor risk and costs onto franchisees. - **Franchisees (Losers):** Already bearing the financial burden of royalties, fees, and strict compliance, they now face even greater exposure as the *sole* legal employer—left holding the bag when labor laws are violated, even if they’re following franchisor-mandated procedures. - **Workers (Biggest Losers):** Denied a clear path to hold the true economic power holder (the franchisor) accountable for labor violations. Their ability to organize, bargain collectively, or seek redress for wage theft is undermined by a legal fiction that pretends McDonald’s Corp. has no say in how much a McDonald’s worker gets paid. - **Taxpayers & Public (Indirect Losers):** When franchisees go bankrupt or workers turn to public assistance due to low wages, the public bears the cost—while franchisors keep profits offshore and executives collect bonuses.

**Potential Impact & Implications:** This bill isn’t about preserving small business—it’s about entrenching corporate control under the guise of entrepreneurship. By narrowing joint-employer liability to near-meaninglessness, Congress is effectively deregulating labor standards in one of the fastest-growing sectors of the low-wage economy. The result? More wage suppression, fewer unionization efforts, and greater precarity for millions of workers—all while franchisors celebrate another victory in their long campaign to have their cake (control) and eat it too (avoid liability). If passed, the American Franchise Act won’t preserve the franchise model—it will expose it for what it really is: a sophisticated legal structure designed to maximize profit and minimize responsibility, all while waving the flag of small-business patriotism. In other words: business as usual, now with congressional approval.

Related Topics

Labor & Employment PolicyHealthcare & Insurance ReformResearch & Innovation Policy
Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Hern, Kevin [R-OK-1]

Congress 119 • 2024 Election Cycle

Total Contributions
$82,105
25 donors
PACs
$3,000
Organizations
$35,700
Committees
$0
Individuals
$43,405
1
MORONGO BAND OF MISSION INDIANS
2 transactions
$3,000
1
CHICKASAW NATION
2 transactions
$6,600
2
CHEROKEE NATION
2 transactions
$5,000
3
OSAGE NATION
1 transaction
$3,300
4
UNITED KEETOOWAH BAND OF CHEROKEE INDIANS
1 transaction
$3,000
5
MUSCOGEE CREEK NATION
2 transactions
$3,000
6
SYCUAN BAND OF THE KYMEYAAY NATION
1 transaction
$2,500
7
SYCUAN BAN OF THE KUMEYAAY NATION
1 transaction
$2,500
8
MARSH POINTE MANAGEMENT LLC
1 transaction
$2,000
9
SHAKOPEE MDEWAKANTON
1 transaction
$1,650
10
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
1 transaction
$1,650
11
SANTA YNES BAND OF MISSION INDIANS
1 transaction
$1,500
12
DIEBOLT & SON INSURANCE PARTNERS LLC
1 transaction
$1,000
13
EMERALD NURSING & REHAB LANCASTER LLC
1 transaction
$1,000
14
EASTERN BAND OF CHEROKEE INDIANS
1 transaction
$1,000

No committee contributions found

1
BRUTON, BRENDA
2 transactions
$6,735
2
GASPAR, CLAY
1 transaction
$6,600
3
GIBBS, GEORGE E
1 transaction
$6,000
4
BLANTON, LORI
1 transaction
$4,000
5
ABBOTT, AARON
1 transaction
$3,435
6
HOM, MICHAEL
1 transaction
$3,435
7
BROWN JR, JAMES
1 transaction
$3,300
8
LATTNER, D.K.
1 transaction
$3,300
9
THOMAS, ROBERT
1 transaction
$3,300
10
THOMAS, WILLIAM
1 transaction
$3,300

Cosponsors & Their Campaign Finance

This bill has 10 cosponsors. Below are their top campaign contributors.

Rep. Davis, Donald G. [D-NC-1]

ID: D000230

Top Contributors

26

1
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
Mar 5, 2024
2
TUNICA-BILOXI TRIBE OF LA
OrganizationMARKSVILLE, LA
$2,000
Dec 31, 2023
3
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
Jun 6, 2023
4
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
May 13, 2024
5
BARONA BAND OF MISSION INDIANS
OrganizationLAKESIDE, CA
$1,500
May 31, 2023
6
CHEROKEE NATION
OrganizationTAHLEQUAH, OK
$1,000
Dec 28, 2023
7
FISHER, DEBORAH
NOT EMPLOYED • NOT EMPLOYED
IndividualCOEUR D ALENE, ID
$4,000
Jul 29, 2024
8
BLOOM, BRADLEY
BERKSHIRE PARTNERS LLC • INVESTMENTS
IndividualWELLESLEY, MA
$3,300
Oct 31, 2024
9
BRAUFMAN, JILL
NOT EMPLOYED • RETIRED
IndividualSURFSIDE, FL
$3,300
Oct 18, 2024
10
CLAPP, STEPHEN
SELF EMPLOYED • RANCHER
IndividualSEQUIM, WA
$3,300
Oct 30, 2024

Rep. Van Duyne, Beth [R-TX-24]

ID: V000134

Top Contributors

23

1
DEMOCRACY ENGINE (EARMARK)
OrganizationWASHINGTON, DC
$2,500
Aug 10, 2023
2
SYCUAN BAND OF THE KUMEYAAY NATION
OrganizationEL CAJON, CA
$1,000
Aug 2, 2024
3
ALABAMA-COUSHATTA TRIBE
OrganizationLIVINGSTON, TX
$1,000
Oct 24, 2024
4
ALSH, DENNIS
RETIRED • RETIRED
IndividualSOUTHLAKE, TX
$6,600
Sep 30, 2024
5
SCHWARZMAN, CHRISTINE
RETIRED • RETIRED
IndividualNEW YORK, NY
$6,600
Dec 1, 2023
6
ADAIR, AARON
COPART INC. • CEO
IndividualDALLAS, TX
$6,600
Feb 12, 2024
7
ADAIR, AARON
COPART INC. • CEO
IndividualDALLAS, TX
$6,600
Feb 12, 2024
8
GRIFFIN, KENNETH C. MR.
CITADEL LLC • FOUNDER CEO
IndividualMIAMI BEACH, FL
$6,600
Apr 10, 2023
9
FISHER, KENNETH
FISHER INVESTMENTS • EXECUTIVE CHAIRMAN
IndividualPLANO, TX
$6,600
May 23, 2024
10
FISHER, SHERRILYN
PLANO 6500 LLC • MEMBER
IndividualPLANO, TX
$6,600
May 23, 2024

Rep. Scholten, Hillary J. [D-MI-3]

ID: S001221

Top Contributors

33

1
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$6,600
Aug 5, 2024
2
SAGINAW CHIPPEWA INDIAN TRIBE
OrganizationMT PLEASANT, MI
$3,300
Sep 29, 2023
3
POKAGON BAND OF POTAWATOMI INDIANS
OrganizationDOWAGIAC, MI
$3,300
Sep 29, 2023
4
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
Aug 5, 2024
5
MATCH-E-BE-NASH-SHE-WISH BAND OF POTTAWATOMI INDIANS
OrganizationSHELBYVILLE, MI
$3,300
Oct 22, 2024
6
MATCH-E-BE-NASH-SHE-WISH BAND OF POTTAWATOMI INDIANS
OrganizationSHELBYVILLE, MI
$3,300
Dec 21, 2023
7
MASHANTUCKET PEQUOT TRIBE
OrganizationMASHANTUCKET, CT
$3,300
Dec 21, 2023
8
NOTTAWASEPPI HURON BAND OF THE POTAWATOMI
OrganizationFULTON, MI
$3,300
Mar 29, 2024
9
CHEROKEE NATION
OrganizationWASHINGTON, DC
$1,000
Sep 23, 2024
10
PEOPLE FOR BETTER GOVERNMENT COMMITTEE OF THE SAN MANUEL BAND OF MISSION INDIANS
OrganizationLOS ANGELES, CA
$1,000
Aug 22, 2024

Rep. Edwards, Chuck [R-NC-11]

ID: E000246

Top Contributors

20

1
BAUM, ANN
OSAAT ENTERPRISES LLC DBA MCDONALD'S • RESTAURANT OWNER
IndividualCHARLOTTE, NC
$3,300
Dec 21, 2023
2
DUHAMEL, WILLIAM F
ROUTE ONE INVESTMENT COMPANY • PORTFOLIO MANAGER
IndividualSAN FRANCISCO, CA
$3,300
Dec 15, 2023
3
BELL, JOHN W III
BILTMORE PROPERTY GROUP • MANAGEMENT
IndividualASHEVILLE, NC
$3,300
Oct 21, 2024
4
EASTERN BAND OF CHEROKEE INDI, TRIBE
UNINCORP INDIAN TRIBE • UNINCORP INDIAN TRIBE
IndividualCHEROKEE, NC
$3,300
Nov 8, 2024
5
EASTERN BAND OF CHEROKEE INDI, TRIBE
UNINCORP INDIAN TRIBE • UNINCORP INDIAN TRIBE
IndividualCHEROKEE, NC
$3,300
Feb 13, 2024
6
POPE, JAMES
VARIETY WHOLESALERS • RETAILER
IndividualRALEIGH, NC
$3,300
Feb 12, 2024
7
SYKES, CLAY
ESG OPERATIONS INC. • PRINCIPAL
IndividualPENROSE, NC
$3,300
Feb 5, 2024
8
SYKES, LISA
RETIRED • RETIRED
IndividualPENROSE, NC
$3,300
Feb 5, 2024
9
FAISON, JAY
2040 FOUNDATION • DIRECTOR
IndividualCHARLOTTE, NC
$3,300
Mar 4, 2024
10
FAISON, JAY
2040 FOUNDATION • DIRECTOR
IndividualCHARLOTTE, NC
$3,300
Mar 4, 2024

Rep. Costa, Jim [D-CA-21]

ID: C001059

Top Contributors

28

1
TABLE MOUNTAIN RANCHERIA
OrganizationFRIANT, CA
$3,300
Oct 30, 2023
2
EASTERN BAND OF CHEROKEE INDIANS
OrganizationCHEROKEE, NC
$3,300
Sep 18, 2024
3
JJF SP TRUST
OrganizationSAN FRANCISCO, CA
$3,300
Sep 30, 2024
4
SAN JOAQUIN RIVER RANCH
OrganizationFRESNO, CA
$3,300
Jun 30, 2023
5
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
OrganizationSCOTTSDALE, AZ
$1,000
Jul 31, 2023
6
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$1,000
Sep 8, 2023
7
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$1,000
May 19, 2023
8
CHAPPELL-MCLULLAR TRUST
OrganizationHONOLULU, HI
$500
Mar 2, 2024
9
ARK, MANDEEP
SELF EMPLOYED • INTERPRETER
IndividualFRESNO, CA
$6,500
Aug 14, 2024
10
AFZAL, TEHMINA
SELF EMPLOYED • INTERPRETER
IndividualCHINO HILLS, CA
$6,500
Aug 14, 2024

Rep. Alford, Mark [R-MO-4]

ID: A000379

Top Contributors

23

1
OTOE-MISSOURIA TRIBE OF INDIANS
OrganizationRED ROCK, OK
$3,300
Jun 21, 2023
2
CM DUBOIS STRATEGIES LLC
OrganizationWEBSTER GROVES, MO
$2,000
Mar 18, 2024
3
WAYPOINT CONSULTING LLC
OrganizationWASHINGTON, DC
$1,100
Dec 13, 2023
4
CHERRY, DERON
UNITED BEVERAGE COMPANY • PRESIDENT
IndividualKANSAS CITY, MO
$3,300
Sep 30, 2024
5
CHERRY, DERON
UNITED BEVERAGE COMPANY • PRESIDENT
IndividualKANSAS CITY, MO
$3,300
Sep 30, 2024
6
REDFORD, STAN
REDFORD CONSTRUCTION • OWNER
IndividualRAYMORE, MO
$3,300
Jul 26, 2024
7
THOMPSON, CRAIG
GOLDEN VALLEY HEALTH • CEO
IndividualCLINTON, MO
$3,300
Sep 7, 2024
8
COOPER, SHANNON
Individual
$3,300
Dec 29, 2023
9
GRAY, CHARLES M
REMAX • BROKER
IndividualCLINTON, MO
$3,300
Dec 29, 2023
10
GUTHRIE, JASON
J&S FARMS • OWNER
Individual
$3,300
Dec 29, 2023

Rep. Gray, Adam [D-CA-13]

ID: G000605

Top Contributors

32

1
ACTBLUE
OrganizationSOMMERVILLE, MA
$1,000
Aug 27, 2023
2
ACTBLUE
OrganizationSOMMERVILLE, MA
$1,000
Aug 14, 2023
3
ACTBLUE
OrganizationSOMMERVILLE, MA
$1,000
Aug 14, 2023
4
ESPARZA FOR BOARD OF EQUALIZATION 2026
OrganizationFRESNO, CA
$1,000
Jun 4, 2024
5
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$1,000
Aug 1, 2024
6
TONY THURMOND FOR GOVERNOR 2026
OrganizationOAKLAND, CA
$999
Nov 4, 2024
7
TIM GRAYSON FOR SENATE 2024
OrganizationSACRAMENTO, CA
$500
Mar 14, 2024
8
ACTBLUE
OrganizationSOMMERVILLE, MA
$500
Apr 21, 2024
9
ANGEL BARAJAS FOR SUPERVISOR
OrganizationWEST SACRAMENTO, CA
$250
Aug 11, 2024
10
ACTBLUE
OrganizationSOMMERVILLE, MA
$100
May 5, 2024

Rep. Pfluger, August [R-TX-11]

ID: P000048

Top Contributors

23

1
SYCUAN BAND OF THE KUMEYAAY NATION
OrganizationEL CAJON, CA
$3,300
Apr 18, 2024
2
SYCUAN BAND OF THE KUMEYAAY NATION
OrganizationEL CAJON, CA
$3,300
Jun 30, 2023
3
ALABAMA-COUSHATTA TRIBE
OrganizationLIVINGSTON, TX
$1,000
Sep 27, 2024
4
DIMEMMO, COLETTE
RETIRED • RETIRED
IndividualFORT MYERS, FL
$6,600
Oct 24, 2024
5
PUDWILL, JAMES
IndividualNIPOMO, CA
$6,600
Sep 16, 2024
6
GELBMAN, JOEL
IndividualNAPLES, FL
$6,600
Sep 16, 2024
7
GELBMAN, JOEL
RETIRED • RETIRED
IndividualNAPLES, FL
$6,600
Aug 26, 2024
8
PUDWILL, JAMES
RETIRED • RETIRED
IndividualNIPOMO, CA
$6,600
Aug 3, 2024
9
WILSON, CELIA R
OIL AND GAS • SELF-EMPLOYED
IndividualMIDLAND, TX
$5,800
Mar 31, 2024
10
WILSON, CELIA R
SELF • OIL AND GAS
IndividualMIDLAND, TX
$5,800
Apr 9, 2024

Rep. Cuellar, Henry [D-TX-28]

ID: C001063

Top Contributors

25

1
TIGUA INDIAN RESERVATION
OrganizationEL PASO, TX
$3,000
Dec 31, 2023
2
THE CHICKASAW NATION
OrganizationADA, OK
$2,500
Jun 30, 2023
3
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
Jun 22, 2023
4
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
Apr 30, 2024
5
ALABAMA-COUSHATTA TRIBE
OrganizationLIVINGSTON, TX
$1,000
Sep 27, 2024
6
GARIBAY, RUBEN
SELECT DEDICATED SOLUTIONS • MEMBER
IndividualSAN ANTONIO, TX
$6,600
Dec 28, 2023
7
GARIBAY, SOPHIA S.
SELECT DEDICATED SOLUTIONS • DIRECTOR
IndividualSAN ANTONIO, TX
$6,600
Dec 28, 2023
8
GARIBAY, RUBEN JR
SELECT DEDICATED SOLUTIONS • MEMBER
IndividualQUEMADO, TX
$3,300
Oct 25, 2024
9
GASTELUM, JUAN C.
GREEN CORRIDORS LLC • SVP LAND PORTS OF ENTRY
IndividualLAKEWAY, TX
$3,300
Oct 24, 2024
10
JAVED, MUHAMMAD T.
RICELAND HEALTHCARE • CHIEF EXECUTIVE OFFICER
IndividualBEAUMONT, TX
$3,300
Oct 29, 2024

Rep. Moran, Nathaniel [R-TX-1]

ID: M001224

Top Contributors

20

1
PELTIER, PATRICK
PELTIER AUTO GROUP • VICE PRESIDENT
IndividualTYLER, TX
$9,900
Jan 31, 2024
2
PELTIER, PATRICK
IndividualTYLER, TX
$6,600
Feb 22, 2024
3
MARSHALL, MATTHEW
DRAKE • REAL ESTATE
IndividualTYLER, TX
$6,600
Aug 22, 2024
4
MARSHALL, MATTHEW
DRAKE • REAL ESTATE
IndividualTYLER, TX
$6,600
Aug 22, 2024
5
ANDERSON, RICHARD M.
PAFFORD EMS • 911 PROFESSIONAL
IndividualMARSHALL, TX
$5,000
Apr 15, 2024
6
LEATHERWOOD, HARRY
SELF • SELF
IndividualTYLER, TX
$5,000
Sep 23, 2024
7
STOVALL, SCOTT
IndividualTROUP, TX
$3,300
Jan 18, 2024
8
PELTIER, MIKAH ANN
COMMUNITY VOLUNTEER • COMMUNITY VOLUNTEER
IndividualTYLER, TX
$3,300
Jan 31, 2024
9
PELTIER, PATRICK
PELTIER AUTO GROUP • VICE PRESIDENT
IndividualTYLER, TX
$3,300
Jan 31, 2024
10
STEVENSON, DAVID L
CUSTOM COMMODITIES TRANSPORT • OWNER
IndividualDIANA, TX
$3,300
Feb 1, 2024

Donor Network - Rep. Hern, Kevin [R-OK-1]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Loading...

Showing 62 nodes and 67 connections

Total contributions: $67

Top Donors - Rep. Hern, Kevin [R-OK-1]

Showing top 25 donors by contribution amount

1 PAC14 Orgs10 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 1 helped, 1 harmed.

  • −Labor Unionsconfidence 0.70

    Section 3 clarifies joint employment for franchising, potentially limiting labor unions' ability to organize franchise employees, as it narrows the definition of joint employer under the National Labor Relations Act.

  • +Big-Box Retailconfidence 0.60

    Section 2 findings (4) mentions the economic output of franchise establishments, which could include retail franchises, potentially benefiting the big-box retail industry.

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Department of Labor and Related Agencies

Very Strong
Vector: 74%
Pages: 624-626AI Enhanced

AI Analysis:

"The American Franchise Act directly amends the NLRA to establish a 'direct and immediate control' standard for joint employer liability, which mirrors Project 2025's call to return to that long‑standing definition and protect the franchise business model."

Key themes:joint employer definitiondirect and immediate controlfranchise business modelNLRB/NLRA reformsmall business protection

— 591 — Department of Labor and Related Agencies qualify as an independent contractor or employee under the FLSA and NLRA. The Biden Administration is replacing those rules with vague and expansive definitions that would add uncertainty, increase costs, and reduce options for Americans who want to work independently. l NLRB and DOL should return to their 2019 and 2021 independent contractor rules that provided much-needed clarity for workers and employers. l Congress should establish a bright-line test—based on the level of control an individual exercises over his or her work—to determine whether a payee is an employee or an independent contractor, across all relevant laws. This would prevent continued uncertainty as well as provide continuity across federal laws. l Congress should provide a safe harbor from employer-employee status for companies that offer independent workers access to earned benefits. Doing so would increase access among independent contractors to traditional pooled workplace benefits such as health care and retirement savings accounts. Protect Small Businesses and Entrepreneurship (Joint Employer). Millions of busi- nesses across America engage in mutually beneficial affiliation arrangements with other businesses. These arrangements include janitorial services, staffing firms, construction contractors and subcontractors, technology support services, and many other vendor and contracting services. They also include the nearly 775,000 independently owned franchise businesses, which employ 8.2 million workers across the United States. The franchise structure offers a proven business model for individuals who want to own and operate their own small business. An Obama-era regulation changed the definition of a joint employer to make corporate franchi- sors jointly liable for employees of individual franchisee owners, even without the franchisor exercising any direct control over those employees. The Biden Admin- istration is advancing an even more expansive definition of a joint employer that would upend the franchise business model, taking away ownership and income opportunities from small-business entrepreneurs, costing jobs, and raising prices. l DOL and NLRB should return to the long-standing approach to defining joint employers based on direct and immediate control. l Congress should enact the Save Local Business Act, which would codify the long-standing definition that has existed outside the Obama-era and Biden-proposed rules.

Department of Labor and Related Agencies

Very Strong
Vector: 71%
Pages: 624-626AI Enhanced

AI Analysis:

"The American Franchise Act directly implements Project 2025's joint employer policy by amending the NLRA to define joint employment based on 'direct and immediate control' over essential employment terms, thereby protecting franchisors from liability and preserving the franchise business model as advocated in the policy."

Key themes:joint employer definitiondirect and immediate controlfranchise business modelsmall business protectionNLRB/DOL regulation

— 591 — Department of Labor and Related Agencies qualify as an independent contractor or employee under the FLSA and NLRA. The Biden Administration is replacing those rules with vague and expansive definitions that would add uncertainty, increase costs, and reduce options for Americans who want to work independently. l NLRB and DOL should return to their 2019 and 2021 independent contractor rules that provided much-needed clarity for workers and employers. l Congress should establish a bright-line test—based on the level of control an individual exercises over his or her work—to determine whether a payee is an employee or an independent contractor, across all relevant laws. This would prevent continued uncertainty as well as provide continuity across federal laws. l Congress should provide a safe harbor from employer-employee status for companies that offer independent workers access to earned benefits. Doing so would increase access among independent contractors to traditional pooled workplace benefits such as health care and retirement savings accounts. Protect Small Businesses and Entrepreneurship (Joint Employer). Millions of busi- nesses across America engage in mutually beneficial affiliation arrangements with other businesses. These arrangements include janitorial services, staffing firms, construction contractors and subcontractors, technology support services, and many other vendor and contracting services. They also include the nearly 775,000 independently owned franchise businesses, which employ 8.2 million workers across the United States. The franchise structure offers a proven business model for individuals who want to own and operate their own small business. An Obama-era regulation changed the definition of a joint employer to make corporate franchi- sors jointly liable for employees of individual franchisee owners, even without the franchisor exercising any direct control over those employees. The Biden Admin- istration is advancing an even more expansive definition of a joint employer that would upend the franchise business model, taking away ownership and income opportunities from small-business entrepreneurs, costing jobs, and raising prices. l DOL and NLRB should return to the long-standing approach to defining joint employers based on direct and immediate control. l Congress should enact the Save Local Business Act, which would codify the long-standing definition that has existed outside the Obama-era and Biden-proposed rules. — 592 — Mandate for Leadership: The Conservative Promise Overtime Pay Threshold. Overtime pay is one of the most challenging aspects of the Fair Labor Standards Act rules. “Nonexempt workers” (e.g., workers whose job duties fall within the law’s power or whose total pay is low enough) must be paid overtime (150 percent of the “regular rate”) for every hour over 40 in a work- week. Overtime requirements may discourage employers from offering certain fringe benefits such as reimbursement for education, childcare, or even free meals because the benefits’ value may be included in the “regular rate” that must be paid at 150 percent for all overtime hours. And because some of these fringe ben- efits may be more valuable (and often come with tax preferences that benefit the worker), the goal should be to set a threshold to ensure lower-income workers have the protections of overtime pay without discouraging employers from offering these benefits. l DOL should maintain an overtime threshold that does not punish businesses in lower-cost regions (e.g., the southeast United States). The Trump-era threshold is high enough to capture most line workers in lower-cost regions. One possibility to consider (likely requiring congressional action) would be to automatically update the thresholds every five years using the Personal Consumption Expenditures (PCE) as an inflation adjustment. This could reduce the likelihood of a future Administration attempting to make significant changes but would also impose more adjustments on businesses as those automatic increases take hold. l Congress should clarify that the “regular rate” for overtime pay is based on the salary paid rather than all benefits provided. This would enable employers to offer additional benefits to employees without fear that those benefits would dramatically increase overtime pay. l Congress should provide flexibility to employers and employees to calculate the overtime period over a longer number of weeks. Specifically, employers and employees should be able to set a two- or four- week period over which to calculate overtime. This would give workers greater flexibility to work more hours in one week and fewer hours in the next and would not require the employer to pay them more for that same total number of hours of work during the entire period. Compliance-Assistance Programming. Labor agencies are often tempted to encourage “over compliance” by companies subject to regulation by pursuing “regulation through enforcement” strategies. Rather than giving regulated enti- ties clear boundaries for what they can and cannot do under the law, the agencies

Department of Labor and Related Agencies

Strong
Vector: 61%
Pages: 633-635AI Enhanced

AI Analysis:

"The American Franchise Act aligns with Project 2025's goal of reversing expansive NLRB interpretations of joint employment and protected concerted activity by limiting franchisor liability under the NLRA, reflecting a shared objective to curb what conservatives view as overreach in labor law enforcement."

Key themes:joint employmentNLRB oversightNLRA interpretationfranchise business modellabor liability

— 601 — Department of Labor and Related Agencies The NLRB has issued extreme interpretations of these activities, such as deter- mining that a business’s requiring its employees to be courteous to customers and one another is an unlawful infringement on the free speech rights implicit in the protected concerted activity protections in the NLRA. l Reverse unreasonable interpretations of “protected concerted activity.” The NLRB should return to the 2019 Alstate Maintenance interpretation of what does and does not constitute protected concerted activity, including listing eight instances of lawful actions by employers. Injunctive Relief and Worker Organizing Activities. Within the confines of the more reasonable definition of protected concerted activity described above, the NLRB should increase its pursuit of reinstatement injunctions. Firing work- ers engaged in concerted activity has an immediate chilling effect on organizing, but remedies under the NLRA typically come only much later and amount only to backpay. In NLRA section 10(j), Congress empowered the NLRB to obtain temporary injunctions that immediately reinstate workers to their jobs in these circumstances. This provides a more meaningful remedy to the worker and creates a significant deterrent to unfair labor practices, because prompt reinstatement will tend to reinforce the legitimacy of the organizing effort. The NLRB overwhelmingly prevails when pursuing an injunction, succeeding 100 percent of the time in 2020 and 91 percent of the time in 2021. l Increase the use of 10(j) injunctive relief. The NLRB should increase its use of 10(j) and should articulate guidelines for situations in which it intends to seek injunctive relief; the board should delegate authority to pursue such injunctions to the general counsel and the general counsel should establish a policy of considering them expeditiously in all retaliation cases identified by regional offices. Dues-Funded Worker Centers. Under current law, both labor unions and unionized employers must file financial disclosures with DOL on an annual basis to ward off potential fraud and corruption of the sort that has been seen recently within the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW). However, worker centers, which have grown in number and influ- ence enormously over the past decade, are not required to file these disclosures. l Investigate worker centers and require financial disclosures. DOL should investigate worker centers that look and act like unions and bring enforcement actions to require them to file the same financial disclosures. — 602 — Mandate for Leadership: The Conservative Promise Office of Labor-Management Standards Initiative. Currently, the Office of Labor-Management Standards (OLMS) may investigate potential employer mal- feasance with regard to union funds in the absence of any complaint by a worker or union but may not do the same with regard to potential union malfeasance. If OLMS has evidence that a union may be violating the law based on information available to the agency (such as annual financial disclosure reports, information developed during an audit of a union’s books and records, or information obtained from other government agencies) it should be permitted to open an investigation. It should have the same enforcement tools available for both employers and unions. l Revise investigation standards. The Office of Labor-Management Standards should revise its investigation standards to authorize investigations without receiving a formal complaint. Persuader Rule. During the Obama Administration, DOL created significant regulatory burdens for employers with respect to the advice that employers receive about union activity. As a general matter, employers who hire lawyers or other con- sultants to advise employees about union issues must file disclosure forms with the department, as must the lawyers and consultants themselves. Prior to the Obama Administration, advice provided solely to the employer required no disclosure. The Obama Administration attempted to eliminate this “advice exemption” with a directive known as the “persuader rule,” which was successfully challenged in court. In 2018, the Trump Administration formally rescinded the persuader rule. l DOL should rescind the persuader rule once again should the Biden Administration revive it. Unionizing the Workplace: Card Check vs. Secret Ballot. Under the NLRA, instead of having a secret ballot election about the decision to unionize a workplace, a union may instead collect signed pro-union cards from a majority of the employees it wishes to represent and then ask the employer and National Labor Relations Board for voluntary union recognition. That request gives the employer the option to hold a secret-ballot election or to recognize the union with- out any such election. This “card check” procedure is likely to induce employees to provide their signed cards in ways that do not accurately reflect their true pref- erences—ranging from a desire not to offend the signature requestor to a wish to avoid intimidation and coercion to signing based on false information provided by union organizers. In short, the card check procedure sidesteps many aspects of democratic decision-making that free and fair elections conducted by secret ballot are supposed to accomplish. Notably, the general counsel of the National Labor Relations Board has recently proposed an esoteric legal theory that card-check

Showing 3 of 5 policy matches

About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

Full Policy Text

Related Bills