HB390 Alabama 2017 Session

Summary

Primary Sponsor

Jim CarnsRepresentative

Republican

Session

Regular Session 2017

Title

Franchises, certain persons not to be deemed or construed as employees of, Franchise Business Protection Act

Summary

HB390 would prevent certain people working for a franchisee from being treated as employees of the franchisor, clarifying employment status under Alabama franchise law.

What This Bill Does

It states that a franchisee, the franchisee’s employees, and independent contractors working for a franchisee may not be deemed or construed to be employees of the franchisor, except where a voluntary agreement with the U.S. Department of Labor says otherwise. The act applies to state and local enforcement of rules and to labor relations and collective bargaining, as long as it does not conflict with federal law. It relies on definitions of franchisee and franchisor from specified federal rules (16 CFR §436.1).

Who It Affects

• Franchisees, their employees, and independent contractors working for a franchisee would not be considered employees of the franchisor.
• Franchisors and state/local government agencies responsible for enforcing labor rules and handling labor relations would operate under clarified boundaries, subject to federal law.

Key Provisions

• This act is named the Franchise Business Protection Act.
• Defines 'franchisee' and 'franchisor' as in 16 C.F.R. § 436.1.
• Except as allowed by a voluntary DOL agreement, franchisees, their employees, and independent contractors for a franchisee may not be deemed employees of the franchisor.
• The act applies to state/local enforcement and to labor relations and collective bargaining, to the extent it does not conflict with federal law.
• Effective date: the first day of the third month after passage and governor's approval (or when it becomes law otherwise).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Franchises