December 7, 2015 - Introduced by Representatives Kuglitsch, Born, R. Brooks,
Craig, Gannon, Hutton, Jarchow, Knodl, Murphy, Rohrkaste, Sanfelippo,
Skowronski, Tittl and Ballweg, cosponsored by Senators Kapenga,
Marklein and Stroebel. Referred to Committee on Small Business
Development.
AB578,1,3
1An Act to create 102.04 (2r), 104.015, 108.065 (4), 109.015 and 111.3205 of the
2statutes;
relating to: exclusion of a franchisor as the employer of a franchisee
3or of an employee of a franchisee.
Analysis by the Legislative Reference Bureau
This bill 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
bill 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.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB578,1
4Section
1. 102.04 (2r) of the statutes is created to read:
AB578,2,3
1102.04
(2r) For purposes of this chapter, a franchisor, as defined in
16 CFR
2436.1 (k), is not considered to be an employer of a franchisee, as defined in
16 CFR
3436.1 (i), or of an employee of a franchisee, unless any of the following applies:
AB578,2,44
(a) The franchisor has agreed in writing to assume that role.
AB578,2,85
(b) The franchisor has been found by the department or the division to have
6exercised a type or degree of control over the franchisee or the franchisee's employees
7that is not customarily exercised by a franchisor for the purpose of protecting the
8franchisor's trademarks and brand.
AB578,2
9Section
2. 104.015 of the statutes is created to read:
AB578,2,13
10104.015 Franchisors excluded. For purposes of this chapter, a franchisor,
11as defined in
16 CFR 436.1 (k), is not considered to be an employer of a franchisee,
12as defined in
16 CFR 436.1 (i), or of an employee of a franchisee, unless any of the
13following applies:
AB578,2,14
14(1) The franchisor has agreed in writing to assume that role.
AB578,2,18
15(2) The franchisor has been found by the department to have exercised a type
16or degree of control over the franchisee or the franchisee's employees that is not
17customarily exercised by a franchisor for the purpose of protecting the franchisor's
18trademarks and brand.
AB578,3
19Section
3. 108.065 (4) of the statutes is created to read:
AB578,2,2220
108.065
(4) Notwithstanding sub. (1e), a franchisor, as defined in
16 CFR 436.1 21(k), is not considered to be an employer of a franchisee, as defined in
16 CFR 436.1 22(i), or of an employee of a franchisee, unless any of the following applies:
AB578,2,2323
(a) The franchisor has agreed in writing to assume that role.
AB578,3,224
(b) The franchisor has been found by the department to have exercised a type
25or degree of control over the franchisee or the franchisee's employees that is not
1customarily exercised by a franchisor for the purpose of protecting the franchisor's
2trademarks and brand.
AB578,4
3Section
4. 109.015 of the statutes is created to read:
AB578,3,7
4109.015 Franchisors excluded. For purposes of this chapter, a franchisor,
5as defined in
16 CFR 436.1 (k), is not considered to be an employer of a franchisee,
6as defined in
16 CFR 436.1 (i), or of an employee of a franchisee, unless any of the
7following applies:
AB578,3,8
8(1) The franchisor has agreed in writing to assume that role.
AB578,3,12
9(2) The franchisor has been found by the department to have exercised a type
10or degree of control over the franchisee or the franchisee's employees that is not
11customarily exercised by a franchisor for the purpose of protecting the franchisor's
12trademarks and brand.
AB578,5
13Section
5. 111.3205 of the statutes is created to read:
AB578,3,17
14111.3205 Franchisors excluded. For purposes of this subchapter, a
15franchisor, as defined in
16 CFR 436.1 (k), is not considered to be an employer of a
16franchisee, as defined in
16 CFR 436.1 (i), or of an employee of a franchisee, unless
17any of the following applies:
AB578,3,18
18(1) The franchisor has agreed in writing to assume that role.
AB578,3,22
19(2) The franchisor has been found by the department to have exercised a type
20or degree of control over the franchisee or the franchisee's employees that is not
21customarily exercised by a franchisor for the purpose of protecting the franchisor's
22trademarks and brand.
AB578,6
23Section
6.
Initial applicability.
AB578,4,2
1(1)
Exclusion of franchisors as employers. This act first applies to work
2performed on the effective date of this subsection.
