NATIONAL — A national house bill, and Department of Labor (DOL) rule, which could be voted on during this current U.S. legislative session — or the Second Session of the 119th U.S. Congress — could depreciate joint employer standards and reduce nearly 9 million worker protections across the U.S.
The American Franchise Act (AFA) — introduced and sponsored by U.S. House Representatives Kevin Hern (Oklahoma 1st District) and Donald “Don” Davis (North Carolina 1st District) in September 2025 — or U.S. HB5267, would amend the National Labor Relations Act (NLRA), established in 2020 — which currently classifies two or more entities as joint employers of a group of employees if each has an employment relationship with the employees, according to the National Labor Relations Board (NLRB) — to instead, specify when a franchisor is considered exercising direct and immediate control over a franchisee’s employees.
The AFA was referred to the House Committee on Education and Workforce on Sept. 10, 2025 and has remained in committee.
However, various labor organizations — including the AFL-CIO — have spoken out in opposition of HB5267, detailing the implications this bill would have on unions and working people across the U.S. — specifically workers’ bargaining power for their working conditions and workplace protection enforcement under the NLRA and the Fair Labor Standards Act (FLSA), if passed out of committee.
“This bill would protect giant franchisors’ power to dictate terms of employment, while shielding them from any responsibility for those terms — leaving small-business franchisees and their employees holding the bag,” the AFL-CIO said in a press release on March 27. “The American Franchise Act is anti-worker, anti-union and anti-small business; it undermines workers’ rights, saddles small-businesses with responsibility for things beyond their control and frustrates good faith efforts to solve problems.”
The AFL-CIO went on to mention that as a franchisor is generally in charge of organizing operating hours, staffing levels, scheduling and payroll, with the ability to influence who is allowed to work under a franchise agreement. With the changes the AFA proposes, workers’ wages, schedules and working conditions could face modifications.
“It creates loopholes for outright union busting, allowing franchisors to tell franchisees their opinions on performance of particular employees,” the AFL-CIO said in a press release on March 27.
As this is a national bill, if passed, Missouri and Kansas would not be required to adopt this legislation at the state level. However, it would require enforcement for all federal employment and labor laws. Though, Missouri and Kansas are both considered non-registration states in terms of franchising — meaning, they do not require franchisors to register or file their Franchise Disclosure Document (FDD) with the state prior to selling their franchise.
In Jefferson City
While the AFA is a federal bill, Missouri currently has its own bill at the state level, which has passed both the House and Senate chambers, that deals with joint employment.
HB1644 — sponsored by Missouri House 155th District Representative Matthew Overcast (R) and Missouri Senator Nicholas Schroer (R) — was introduced in December 2025 and was referred to fiscal review on May 5. This bill, known as the “Employer-Employee Relationship” bill states that franchisee and franchisee’s employees will not be considered employees of a franchisor for any purpose unless said franchisor has direct control over the hiring and firing of a franchisee’s employees, according to the docket.
While this bill repeals previous legislation, which prohibited certain public employees, including first responders, from forming and joining labor organizations, certain labor and working class Missourians have spoken out in opposition of HB1644 as it allows parent corporations to bypass legal working condition responsibilities, while reducing worker protections.
“HB1644 narrows the definition of ‘joint employer’ by declaring that a franchisor and its franchisee’s employees are not considered jointly employed unless the franchisor exercises direct and immediate control over hiring, firing, discipline or direction of work,” State of Missouri Special Education Paraprofessional Sarah Berry stated in a public testimony submitted on Jan. 13. “This bill effectively shields large corporate franchisors from accountability, while preserving their economic power and brand control — shifting risk and liability downward onto smaller operators and workers. I respectfully urge the committee to oppose HB1644 and preserve worker protections and accountability under Missouri law.”
This bill is currently on the Missouri House calendar in fiscal review with Senate amendments. If passed, HB1644 is proposed to go into effect on Aug. 28.
Julia Williams — a Kansas City native — is a reporter and digital producer for The Labor Beacon. A University of Missouri School of Journalism alumna, she previously served as the editor-in-chief of The Northeast News before joining The Labor Beacon staff.
Williams’s grandfather was a Claycomo Ford Motor Company retiree and avid UAW Local 249 supporter, allowing her to understand the union difference from a young age.
In her free time, Williams enjoys spending time with her family, traveling to see her friends and hanging out at home with her cat, Greta. She loves a good cup of coffee, seeing local, live music and shopping secondhand. With a passion for storytelling, she hopes to bring her knowledge of journalistic integrity to the Kansas City union community — giving union and labor workers a voice, while holding people in powerful positions accountable.
