84R26948 JSC-D
By: Farney, Simmons, Oliveira, et al. H.B. No. 1686
Substitute the following for H.B. No. 1686:
By: Oliveira C.S.H.B. No. 1686
A BILL TO BE ENTITLED
AN ACT
relating to excluding a franchisor as an employer of a franchisee or
a franchisee's employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 21, Labor Code, is amended
by adding Section 21.0022 to read as follows:
Sec. 21.0022. FRANCHISORS EXCLUDED. (a) In this section,
"franchisee" and "franchisor" have the meanings assigned by 16
C.F.R. Section 436.1.
(b) For purposes of this chapter, a franchisor is not
considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's employees.
(c) With respect to a specific claim for relief under this
chapter made by a franchisee or a franchisee's employee, this
section does not apply to a franchisor who has been found by a court
of competent jurisdiction to have exercised a type or degree of
control over the franchisee or the franchisee's employees not
customarily exercised by a franchisor for the purpose of protecting
the franchisor's trademarks and brand.
SECTION 2. Subchapter A, Chapter 61, Labor Code, is amended
by adding Section 61.0031 to read as follows:
Sec. 61.0031. FRANCHISORS EXCLUDED. (a) In this section,
"franchisee" and "franchisor" have the meanings assigned by 16
C.F.R. Section 436.1.
(b) For purposes of this chapter, a franchisor is not
considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's employees.
(c) With respect to a specific claim for relief under this
chapter made by a franchisee or a franchisee's employee, this
section does not apply to a franchisor who has been found by a court
of competent jurisdiction to have exercised a type or degree of
control over the franchisee or the franchisee's employees not
customarily exercised by a franchisor for the purpose of protecting
the franchisor's trademarks and brand.
SECTION 3. Subchapter A, Chapter 62, Labor Code, is amended
by adding Section 62.006 to read as follows:
Sec. 62.006. FRANCHISORS EXCLUDED. (a) In this section,
"franchisee" and "franchisor" have the meanings assigned by 16
C.F.R. Section 436.1.
(b) For purposes of this chapter, a franchisor is not
considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's employees.
(c) With respect to a specific claim for relief under this
chapter made by a franchisee or a franchisee's employee, this
section does not apply to a franchisor who has been found by a court
of competent jurisdiction to have exercised a type or degree of
control over the franchisee or the franchisee's employees not
customarily exercised by a franchisor for the purpose of protecting
the franchisor's trademarks and brand.
SECTION 4. Chapter 91, Labor Code, is amended by adding
Section 91.0013 to read as follows:
Sec. 91.0013. FRANCHISORS EXCLUDED. (a) In this section,
"franchisee" and "franchisor" have the meanings assigned by 16
C.F.R. Section 436.1.
(b) For purposes of this chapter, a franchisor is not
considered to be in a coemployment relationship with:
(1) a franchisee; or
(2) a franchisee's employees.
(c) With respect to a specific claim for relief under this
chapter made by a franchisee or a franchisee's employee, this
section does not apply to a franchisor who has been found by a court
of competent jurisdiction to have exercised a type or degree of
control over the franchisee or the franchisee's employees not
customarily exercised by a franchisor for the purpose of protecting
the franchisor's trademarks and brand.
SECTION 5. Section 201.021, Labor Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) In this subsection, "franchisee" and "franchisor" have
the meanings assigned by 16 C.F.R. Section 436.1. The definition of
employer provided by this section does not apply to a franchisor
with respect to:
(1) a franchisee; or
(2) a franchisee's employees.
(e) With respect to a specific claim for relief under this
subtitle made by a franchisee or a franchisee's employee,
Subsection (d) does not apply to a franchisor who has been found by
a court of competent jurisdiction to have exercised a type or degree
of control over the franchisee or the franchisee's employees not
customarily exercised by a franchisor for the purpose of protecting
the franchisor's trademarks and brand.
SECTION 6. Subchapter B, Chapter 401, Labor Code, is
amended by adding Section 401.014 to read as follows:
Sec. 401.014. FRANCHISORS EXCLUDED. (a) In this section,
"franchisee" and "franchisor" have the meanings assigned by 16
C.F.R. Section 436.1.
(b) For purposes of this subtitle, a franchisor is not
considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's employees.
(c) With respect to a specific claim for relief under this
subtitle made by a franchisee or a franchisee's employee, this
section does not apply to a franchisor who has been found by a court
of competent jurisdiction to have exercised a type or degree of
control over the franchisee or the franchisee's employees not
customarily exercised by a franchisor for the purpose of protecting
the franchisor's trademarks and brand.
SECTION 7. Subchapter A, Chapter 411, Labor Code, is
amended by adding Section 411.005 to read as follows:
Sec. 411.005. FRANCHISORS EXCLUDED. (a) In this section,
"franchisee" and "franchisor" have the meanings assigned by 16
C.F.R. Section 436.1.
(b) For purposes of this chapter, a franchisor is not
considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's employees.
(c) With respect to a specific claim for relief under this
chapter made by a franchisee or a franchisee's employee, this
section does not apply to a franchisor who has been found by a court
of competent jurisdiction to have exercised a type or degree of
control over the franchisee or the franchisee's employees not
customarily exercised by a franchisor for the purpose of protecting
the franchisor's trademarks and brand.
SECTION 8. The change in law made by this Act applies only
to the liability of a franchisor based on conduct occurring on or
after the effective date of this Act. Conduct by a franchisor
occurring before the effective date of this Act is governed by the
law in effect on the date the conduct occurred, and the former law
is continued in effect for that purpose.
SECTION 9. This Act takes effect September 1, 2015.