2015 Senate Bill 492 / Public Act 266

"Push back" against Obama NLRB franchise unionization rule

Introduced in the Senate

Sept. 16, 2015

Introduced by Sen. Jack Brandenburg (R-8)

To establish that the owner of a business franchise rather than the franchisor is considered the sole employer of the workers for whom he or she provides a benefit plan or pays wages, except as otherwise specified in the franchise agreement, or where prohibited by law. The bill was introduced after President Obama’s appointees on the National Labor Relations Board issued a ruling that all franchise employees are actually employed by the franchiser for purposes of union organizing. Among other things, if sustained this policy would mean that employees at local restaurants franchised by a national chain like McDonalds could be unionized on a nationwide basis.

Referred to the Committee on Commerce

Oct. 8, 2015

Reported without amendment

With the recommendation that the bill pass.

Nov. 10, 2015

Passed in the Senate 27 to 10 (details)

Received in the House

Nov. 10, 2015

Referred to the Committee on Commerce and Trade

Dec. 8, 2015

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Dec. 15, 2015

Amendment offered by Rep. Jim Townsend (D-26)

To not apply the bill if it would contradict the controversial franchise rule adopted by the federal National Labor Relations Board (which was the event that triggered the bill's introduction).

The amendment failed by voice vote

Dec. 16, 2015

Passed in the House 59 to 46 (details)

To establish that the owner of a business franchise rather than the franchisor is considered the sole employer of the workers for whom he or she provides a benefit plan or pays wages, except as otherwise specified in the franchise agreement, or where prohibited by law. The bill was introduced after President Obama’s appointees on the National Labor Relations Board issued a ruling that all franchise employees are actually employed by the franchiser for purposes of union organizing. Among other things, if sustained this policy would mean that employees at local restaurants franchised by a national chain like McDonalds could be unionized on a nationwide basis.

Signed by Gov. Rick Snyder

Dec. 23, 2015