ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 578
February 9, 2016 - Offered by Representative Kuglitsch.
AB578-ASA1,1,4
1An Act to amend 108.065 (1e) (intro.), (a) (intro.) and (b) (intro.); and
to create
2102.04 (2r), 104.015, 108.065 (1e) (c), 108.065 (4), 109.015 and 111.3205 of the
3statutes;
relating to: exclusion of a franchisor as the employer of a franchisee
4or of an employee of a franchisee.
Analysis by the Legislative Reference Bureau
This substitute amendment excludes a franchisor as the employer of a
franchisee or of an employee of a franchisee for purposes of certain laws relating to
employment. Specifically, the substitute amendment provides that for purposes of
the laws relating to worker's compensation, unemployment insurance, employment
discrimination, minimum wage, and wage payments, a franchisor is not considered
to be the employer of a franchisee or of an employee of a franchisee, unless any of the
following applies:
1. The franchisor has agreed in writing to assume that role.
2. The franchisor has been found to have exercised a type or degree of control
over the franchisee or the franchisee's employees that is not customarily exercised
by a franchisor for the purpose of protecting the franchisor's trademarks and brand.
With respect to the unemployment insurance law, the substitute amendment
provides for the application of the exclusion only if a franchisor is found to be an
employer of a franchisee or of an employee of a franchisee under provisions in current
law used for determining which employing unit is considered an employer.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB578-ASA1,1
1Section
1. 102.04 (2r) of the statutes is created to read:
AB578-ASA1,2,42
102.04
(2r) For purposes of this chapter, a franchisor, as defined in
16 CFR
3436.1 (k), is not considered to be an employer of a franchisee, as defined in
16 CFR
4436.1 (i), or of an employee of a franchisee, unless any of the following applies:
AB578-ASA1,2,55
(a) The franchisor has agreed in writing to assume that role.
AB578-ASA1,2,96
(b) The franchisor has been found by the department or the division to have
7exercised a type or degree of control over the franchisee or the franchisee's employees
8that is not customarily exercised by a franchisor for the purpose of protecting the
9franchisor's trademarks and brand.
AB578-ASA1,2
10Section
2. 104.015 of the statutes is created to read:
AB578-ASA1,2,14
11104.015 Franchisors excluded. For purposes of this chapter, a franchisor,
12as defined in
16 CFR 436.1 (k), is not considered to be an employer of a franchisee,
13as defined in
16 CFR 436.1 (i), or of an employee of a franchisee, unless any of the
14following applies:
AB578-ASA1,2,15
15(1) The franchisor has agreed in writing to assume that role.
AB578-ASA1,2,19
16(2) The franchisor has been found by the department to have exercised a type
17or degree of control over the franchisee or the franchisee's employees that is not
18customarily exercised by a franchisor for the purpose of protecting the franchisor's
19trademarks and brand.
AB578-ASA1,3
20Section
3. 108.065 (1e) (intro.), (a) (intro.) and (b) (intro.) of the statutes are
21amended to read:
AB578-ASA1,3,4
1108.065
(1e) (intro.) Except as provided in subs. (2) and (3), if there is more than
2one employing unit that has a relationship to an employee, the department shall
3determine which of the employing units is the employer of the employee by
4considering doing the following:
AB578-ASA1,3,55
(a) (intro.)
An Considering an employing unit's right by contract and in fact to:
AB578-ASA1,3,66
(b) (intro.)
Which Considering which employing unit:
AB578-ASA1,4
7Section
4. 108.065 (1e) (c) of the statutes is created to read:
AB578-ASA1,3,118
108.065
(1e) (c) If, after the application of pars. (a) and (b), a franchisor, as
9defined in
16 CFR 436.1 (k), is determined to be the employer of a franchisee, as
10defined in
16 CFR 436.1 (i), or of an employee of a franchisee, applying sub. (4). The
11department shall apply sub. (4) only as provided in this paragraph.
AB578-ASA1,5
12Section
5. 108.065 (4) of the statutes is created to read:
AB578-ASA1,3,1513
108.065
(4) (a) A franchisor, as defined in
16 CFR 436.1 (k), is not considered
14to be an employer of a franchisee, as defined in
16 CFR 436.1 (i), or of an employee
15of a franchisee, unless any of the following applies:
AB578-ASA1,3,1616
1. The franchisor has agreed in writing to assume that role.
AB578-ASA1,3,2017
2. The franchisor has been found by the department to have exercised a type
18or degree of control over the franchisee or the franchisee's employees that is not
19customarily exercised by a franchisor for the purpose of protecting the franchisor's
20trademarks and brand.
AB578-ASA1,3,2121
(b) This subsection shall be applied only as provided in sub. (1e) (c).
AB578-ASA1,6
22Section
6. 109.015 of the statutes is created to read:
AB578-ASA1,4,2
23109.015 Franchisors excluded. For purposes of this chapter, a franchisor,
24as defined in
16 CFR 436.1 (k), is not considered to be an employer of a franchisee,
1as defined in
16 CFR 436.1 (i), or of an employee of a franchisee, unless any of the
2following applies:
AB578-ASA1,4,3
3(1) The franchisor has agreed in writing to assume that role.
AB578-ASA1,4,7
4(2) The franchisor has been found by the department to have exercised a type
5or degree of control over the franchisee or the franchisee's employees that is not
6customarily exercised by a franchisor for the purpose of protecting the franchisor's
7trademarks and brand.
AB578-ASA1,7
8Section
7. 111.3205 of the statutes is created to read:
AB578-ASA1,4,12
9111.3205 Franchisors excluded. For purposes of this subchapter, a
10franchisor, as defined in
16 CFR 436.1 (k), is not considered to be an employer of a
11franchisee, as defined in
16 CFR 436.1 (i), or of an employee of a franchisee, unless
12any of the following applies:
AB578-ASA1,4,13
13(1) The franchisor has agreed in writing to assume that role.
AB578-ASA1,4,17
14(2) The franchisor has been found by the department to have exercised a type
15or degree of control over the franchisee or the franchisee's employees that is not
16customarily exercised by a franchisor for the purpose of protecting the franchisor's
17trademarks and brand.
AB578-ASA1,4,2019
(1)
Exclusion of franchisors as employers. This act first applies to work
20performed on the effective date of this subsection.
