Alabama law now clarifies the definition of the employment relationship. Act No. 2017-391, the Franchise Business Protection Act (HB390), by Rep. Jim Carns, R-Birmingham, ensures that state enforcement agencies and state courts do not adopt the joint-employer standard adopted by the National Labor Relations Board. Because of recent NLRB actions, franchisees may be jointly liable with a brand name franchisor for allegations of employment law violations.
The Alabama Retail Association supported this legislation to protect small franchisees.
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