July 13, 2018
The Ohio House of Representatives passed a bill that would clarify that a franchisor is not the employer of a franchisee or the franchisee’s employees.
The law would prevent state agencies and regulators from applying the NLRB's expansive Browning-Ferris standard when interpreting Ohio state laws on issues such as minimum wage, overtime, bimonthly pay, workers’ compensation, unemployment compensation, or income tax law, per the Workplace Policy Institute’s State of the States report.
Bill sponsor Rep. Niraj Antani levelled pointed criticism against the NLRB’s joint employer standard, saying, “President Obama’s liberal NLRB’s overreach on the joint employer issue is disastrous for franchisors and franchisees such as hotels and restaurants across Ohio. This bill will reverse that ruling for the purposes of Ohio law, protecting small business in Ohio.”
Elsewhere in the country, most state legislatures have adjourned or are in recess, with California, Massachusetts, and Ohio the remaining holdouts.