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2015 House Bill 5071: Clarify franchised business employee status

Public Act 18 of 2016

Introduced by Rep. Patrick Somerville R-New Boston on November 10, 2015
To establish that for purposes of enforcing state wage and hour regulations, the actual owner of a business franchise rather than the franchisor is considered the sole employer of the workers to whom he or she provides a benefit plan or pays wages, except as otherwise specified in the franchise agreement, or as prohibited by law. See also House Bill 4901 and Senate Bill 492.   Official Text and Analysis.
Referred to the House Commerce and Trade Committee on November 10, 2015
Reported in the House on December 8, 2015
Without amendment and with the recommendation that the bill pass.
Received in the Senate on January 13, 2016
Referred to the Senate Commerce Committee on January 13, 2016
Reported in the Senate on February 4, 2016
With the recommendation that the bill pass.
Amendment offered by Sen. Curtis Hertel, Jr. D-East Lansing on February 11, 2016
To establish that the bill would not apply if appointees to the National Labor Relations Board define the employees of all franchised businesses as actually being employed by the franchisor (which they have done).
The amendment failed 11 to 26 in the Senate on February 11, 2016.
    See Who Voted "Yes" and Who Voted "No".
Signed by Gov. Rick Snyder on February 23, 2016