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AN ACT
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relating to excluding a franchisor as an employer of a franchisee or |
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a franchisee's employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 21, Labor Code, is amended |
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by adding Section 21.0022 to read as follows: |
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Sec. 21.0022. FRANCHISORS EXCLUDED. (a) In this section, |
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"franchisee" and "franchisor" have the meanings assigned by 16 |
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C.F.R. Section 436.1. |
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(b) For purposes of this chapter, a franchisor is not |
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considered to be an employer of: |
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(1) a franchisee; or |
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(2) a franchisee's employees. |
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(c) With respect to a specific claim for relief under this |
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chapter made by a franchisee or a franchisee's employee, this |
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section does not apply to a franchisor who has been found by a court |
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of competent jurisdiction in this state to have exercised a type or |
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degree of control over the franchisee or the franchisee's employees |
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not customarily exercised by a franchisor for the purpose of |
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protecting the franchisor's trademarks and brand. |
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SECTION 2. Subchapter A, Chapter 61, Labor Code, is amended |
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by adding Section 61.0031 to read as follows: |
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Sec. 61.0031. FRANCHISORS EXCLUDED. (a) In this section, |
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"franchisee" and "franchisor" have the meanings assigned by 16 |
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C.F.R. Section 436.1. |
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(b) For purposes of this chapter, a franchisor is not |
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considered to be an employer of: |
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(1) a franchisee; or |
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(2) a franchisee's employees. |
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(c) With respect to a specific claim for relief under this |
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chapter made by a franchisee or a franchisee's employee, this |
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section does not apply to a franchisor who has been found by a court |
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of competent jurisdiction in this state to have exercised a type or |
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degree of control over the franchisee or the franchisee's employees |
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not customarily exercised by a franchisor for the purpose of |
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protecting the franchisor's trademarks and brand. |
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SECTION 3. Subchapter A, Chapter 62, Labor Code, is amended |
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by adding Section 62.006 to read as follows: |
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Sec. 62.006. FRANCHISORS EXCLUDED. (a) In this section, |
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"franchisee" and "franchisor" have the meanings assigned by 16 |
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C.F.R. Section 436.1. |
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(b) For purposes of this chapter, a franchisor is not |
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considered to be an employer of: |
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(1) a franchisee; or |
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(2) a franchisee's employees. |
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(c) With respect to a specific claim for relief under this |
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chapter made by a franchisee or a franchisee's employee, this |
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section does not apply to a franchisor who has been found by a court |
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of competent jurisdiction in this state to have exercised a type or |
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degree of control over the franchisee or the franchisee's employees |
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not customarily exercised by a franchisor for the purpose of |
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protecting the franchisor's trademarks and brand. |
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SECTION 4. Chapter 91, Labor Code, is amended by adding |
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Section 91.0013 to read as follows: |
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Sec. 91.0013. FRANCHISORS EXCLUDED. (a) In this section, |
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"franchisee" and "franchisor" have the meanings assigned by 16 |
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C.F.R. Section 436.1. |
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(b) For purposes of this chapter, a franchisor is not |
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considered to be in a coemployment relationship with: |
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(1) a franchisee; or |
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(2) a franchisee's employees. |
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(c) With respect to a specific claim for relief under this |
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chapter made by a franchisee or a franchisee's employee, this |
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section does not apply to a franchisor who has been found by a court |
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of competent jurisdiction in this state to have exercised a type or |
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degree of control over the franchisee or the franchisee's employees |
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not customarily exercised by a franchisor for the purpose of |
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protecting the franchisor's trademarks and brand. |
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SECTION 5. Section 201.021, Labor Code, is amended by |
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adding Subsections (d) and (e) to read as follows: |
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(d) In this subsection, "franchisee" and "franchisor" have |
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the meanings assigned by 16 C.F.R. Section 436.1. The definition of |
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employer provided by this section does not apply to a franchisor |
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with respect to: |
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(1) a franchisee; or |
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(2) a franchisee's employees. |
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(e) With respect to a specific claim for relief under this |
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subtitle made by a franchisee or a franchisee's employee, |
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Subsection (d) does not apply to a franchisor who has been found by |
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a court of competent jurisdiction in this state to have exercised a |
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type or degree of control over the franchisee or the franchisee's |
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employees not customarily exercised by a franchisor for the purpose |
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of protecting the franchisor's trademarks and brand. |
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SECTION 6. Subchapter B, Chapter 401, Labor Code, is |
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amended by adding Section 401.014 to read as follows: |
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Sec. 401.014. FRANCHISORS EXCLUDED. (a) In this section, |
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"franchisee" and "franchisor" have the meanings assigned by 16 |
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C.F.R. Section 436.1. |
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(b) For purposes of this subtitle, a franchisor is not |
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considered to be an employer of: |
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(1) a franchisee; or |
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(2) a franchisee's employees. |
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(c) With respect to a specific claim for relief under this |
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subtitle made by a franchisee or a franchisee's employee, this |
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section does not apply to a franchisor who has been found by a court |
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of competent jurisdiction in this state to have exercised a type or |
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degree of control over the franchisee or the franchisee's employees |
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not customarily exercised by a franchisor for the purpose of |
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protecting the franchisor's trademarks and brand. |
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SECTION 7. Subchapter A, Chapter 411, Labor Code, is |
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amended by adding Section 411.005 to read as follows: |
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Sec. 411.005. FRANCHISORS EXCLUDED. (a) In this section, |
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"franchisee" and "franchisor" have the meanings assigned by 16 |
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C.F.R. Section 436.1. |
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(b) For purposes of this chapter, a franchisor is not |
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considered to be an employer of: |
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(1) a franchisee; or |
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(2) a franchisee's employees. |
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(c) With respect to a specific claim for relief under this |
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chapter made by a franchisee or a franchisee's employee, this |
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section does not apply to a franchisor who has been found by a court |
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of competent jurisdiction in this state to have exercised a type or |
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degree of control over the franchisee or the franchisee's employees |
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not customarily exercised by a franchisor for the purpose of |
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protecting the franchisor's trademarks and brand. |
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SECTION 8. The change in law made by this Act applies only |
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to the liability of a franchisor based on conduct occurring on or |
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after the effective date of this Act. Conduct by a franchisor |
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occurring before the effective date of this Act is governed by the |
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law in effect on the date the conduct occurred, and the former law |
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is continued in effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 652 passed the Senate on |
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March 25, 2015, by the following vote: Yeas 23, Nays 8; |
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May 22, 2015, Senate refused to concur in House amendment and |
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requested appointment of Conference Committee; May 27, 2015, House |
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granted request of the Senate; May 30, 2015, Senate adopted |
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Conference Committee Report by the following vote: Yeas 27, |
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Nays 4. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 652 passed the House, with |
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amendment, on May 18, 2015, by the following vote: Yeas 138, |
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Nays 2, one present not voting; May 27, 2015, House granted request |
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of the Senate for appointment of Conference Committee; |
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May 30, 2015, House adopted Conference Committee Report by the |
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following vote: Yeas 145, Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |