American Franchise Act
Latest action (21 Jul 2026): Ordered to be Reported (Amended) by the Yeas and Nays: 18 - 15.
What this bill does
H.R. 5267, the American Franchise Act, would amend the National Labor Relations Act and the Fair Labor Standards Act to set a narrower, more specific standard for when a franchisor can be treated as a "joint employer" of a franchisee's workers. Under the bill, a franchisor could only be considered a joint employer if it possesses and actually exercises "substantial direct and immediate control" over at least one essential term of employment—such as wages, benefits, hours, hiring, discharge, discipline, supervision, or work direction. The bill lists specific franchisor activities, such as setting brand standards, offering training materials, or establishing minimum staffing levels, that would not by themselves count as this kind of control.
The bill primarily affects franchisors and franchisees in the franchise business model, as well as workers employed by franchisees. By tightening the definition of joint employer, it would limit the circumstances under which a franchisor could be held jointly liable, alongside a franchisee, for labor and wage issues affecting the franchisee's employees. Its findings cite estimates that franchising supports significant economic output and millions of jobs nationally. The change would not apply to any legal proceedings that began before the law's enactment.
The bill was introduced in September 2025 by Rep. Kevin Hern and was referred to the House Committee on Education and Workforce. In September 2026, the committee reported the bill out with an amendment, and the House ordered it printed and placed it on the Union Calendar for consideration by the Committee of the Whole. It has not yet been voted on by the full House, and further action, including House floor consideration, Senate action, and presidential signature, would be required before it could become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
The committees assigned to this bill sent it to the House or Senate as a whole for consideration on July 21, 2026.
Timeline
21 Jul 2026
Ordered to be Reported (Amended) by the Yeas and Nays: 18 - 15.
Common questions
- What does H.R. 5267 do?
- H.R. 5267, the American Franchise Act, would amend the National Labor Relations Act and the Fair Labor Standards Act to set a narrower, more specific standard for when a franchisor can be treated as a "joint employer" of a franchisee's workers. Under the bill, a franchisor could only be considered a joint employer if it possesses and actually exercises "substantial direct and immediate control" over at least one essential term of employment—such as wages, benefits, hours, hiring, discharge, discipline, supervision, or work direction. The bill lists specific franchisor activities, such as setting brand standards, offering training materials, or establishing minimum staffing levels, that would not by themselves count as this kind of control. The bill primarily affects franchisors and franchisees in the franchise business model, as well as workers employed by franchisees. By tightening the definition of joint employer, it would limit the circumstances under which a franchisor could be held jointly liable, alongside a franchisee, for labor and wage issues affecting the franchisee's employees. Its findings cite estimates that franchising supports significant economic output and millions of jobs nationally. The change would not apply to any legal proceedings that began before the law's enactment. The bill was introduced in September 2025 by Rep. Kevin Hern and was referred to the House Committee on Education and Workforce. In September 2026, the committee reported the bill out with an amendment, and the House ordered it printed and placed it on the Union Calendar for consideration by the Committee of the Whole. It has not yet been voted on by the full House, and further action, including House floor consideration, Senate action, and presidential signature, would be required before it could become law.
- Has H.R. 5267 become law?
- Not yet. As of 21 Jul 2026, H.R. 5267 is ordered reported.
- Who sponsored H.R. 5267?
- H.R. 5267 was sponsored by Rep. Kevin Hern [R-OK1] (Republican-OK), with 158 cosponsors.
- What's the latest action on H.R. 5267?
- Ordered to be Reported (Amended) by the Yeas and Nays: 18 - 15. (21 Jul 2026).
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