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House File 327 - EnrolledAn Actrelating to franchisor-franchisee relationships for
the purposes of certain employment laws and including
applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION. 85.55 Franchisor-franchisee
relationship.
1. For purposes of this section, franchisee and franchisor
mean the same as defined in section 523H.1.
2. For purposes of this chapter and chapters 86 and 87,
a franchisor shall not be considered to be an employer of a
franchisee or of an employee of a franchisee unless any of the
following conditions apply:
a. The franchisor has agreed in writing to be considered to
be the employer of the franchisee or of the employees of the
franchisee.
b. The franchisor has been found by the workers’
compensation commissioner 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.
Sec. 2. NEW SECTION. 91A.15 Franchisor-franchisee
relationship.
1. For purposes of this section, franchisee and franchisor
mean the same as defined in section 523H.1.
2. For purposes of this chapter, a franchisor shall not be
considered to be an employer of a franchisee or of an employee
of a franchisee unless any of the following conditions apply:
a. The franchisor has agreed in writing to be considered to
be the employer of the franchisee or of the employees of the
franchisee.
b. The franchisor has been found by the commissioner 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.
Sec. 3. Section 91D.1, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 2A. a. For purposes of this subsection,
franchisee and franchisor mean the same as defined in section
-1-523H.1.
b. For purposes of this chapter, a franchisor shall not be
considered to be an employer of a franchisee or of an employee
of a franchisee unless any of the following conditions apply:
(1) The franchisor has agreed in writing to be considered
to be the employer of the franchisee or of the employees of the
franchisee.
(2) The franchisor has been found by the labor commissioner
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.
Sec. 4. NEW SECTION. 96.36 Franchisor-franchisee
relationship.
1. For purposes of this section, franchisee and franchisor
mean the same as defined in section 523H.1.
2. For purposes of this chapter, a franchisor shall not be
considered to be an employer of a franchisee or of an employee
of a franchisee unless any of the following conditions apply:
a. The franchisor has agreed in writing to be considered to
be the employer of the franchisee or of the employees of the
franchisee.
b. The franchisor has been found by the department 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.
Sec. 5. NEW SECTION. 216.22 Franchisor-franchisee
relationship.
1. For purposes of this section, franchisee and franchisor
mean the same as defined in section 523H.1.
2. For purposes of this chapter, a franchisor shall not be
considered to be an employer of a franchisee or of an employee
of a franchisee unless any of the following conditions apply:
a. The franchisor has agreed in writing to be considered to
-2-be the employer of the franchisee or of the employees of the
franchisee.
b. The franchisor has been found by the commission 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.
Sec. 6. APPLICABILITY. This Act applies to work performed
on or after the effective date of this Act.
______________________________
LINDA UPMEYERSpeaker of the House______________________________
CHARLES SCHNEIDERPresident of the Senate I hereby certify that this bill originated in the House and is known as House File 327, Eighty-eighth General Assembly.______________________________
CARMINE BOALChief Clerk of the HouseApproved _______________, 2019______________________________
KIM REYNOLDSGovernorje/rn
the purposes of certain employment laws and including
applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION. 85.55 Franchisor-franchisee
relationship.
1. For purposes of this section, franchisee and franchisor
mean the same as defined in section 523H.1.
2. For purposes of this chapter and chapters 86 and 87,
a franchisor shall not be considered to be an employer of a
franchisee or of an employee of a franchisee unless any of the
following conditions apply:
a. The franchisor has agreed in writing to be considered to
be the employer of the franchisee or of the employees of the
franchisee.
b. The franchisor has been found by the workers’
compensation commissioner 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.
Sec. 2. NEW SECTION. 91A.15 Franchisor-franchisee
relationship.
1. For purposes of this section, franchisee and franchisor
mean the same as defined in section 523H.1.
2. For purposes of this chapter, a franchisor shall not be
considered to be an employer of a franchisee or of an employee
of a franchisee unless any of the following conditions apply:
a. The franchisor has agreed in writing to be considered to
be the employer of the franchisee or of the employees of the
franchisee.
b. The franchisor has been found by the commissioner 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.
Sec. 3. Section 91D.1, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION. 2A. a. For purposes of this subsection,
franchisee and franchisor mean the same as defined in section
-1-523H.1.
b. For purposes of this chapter, a franchisor shall not be
considered to be an employer of a franchisee or of an employee
of a franchisee unless any of the following conditions apply:
(1) The franchisor has agreed in writing to be considered
to be the employer of the franchisee or of the employees of the
franchisee.
(2) The franchisor has been found by the labor commissioner
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.
Sec. 4. NEW SECTION. 96.36 Franchisor-franchisee
relationship.
1. For purposes of this section, franchisee and franchisor
mean the same as defined in section 523H.1.
2. For purposes of this chapter, a franchisor shall not be
considered to be an employer of a franchisee or of an employee
of a franchisee unless any of the following conditions apply:
a. The franchisor has agreed in writing to be considered to
be the employer of the franchisee or of the employees of the
franchisee.
b. The franchisor has been found by the department 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.
Sec. 5. NEW SECTION. 216.22 Franchisor-franchisee
relationship.
1. For purposes of this section, franchisee and franchisor
mean the same as defined in section 523H.1.
2. For purposes of this chapter, a franchisor shall not be
considered to be an employer of a franchisee or of an employee
of a franchisee unless any of the following conditions apply:
a. The franchisor has agreed in writing to be considered to
-2-be the employer of the franchisee or of the employees of the
franchisee.
b. The franchisor has been found by the commission 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.
Sec. 6. APPLICABILITY. This Act applies to work performed
on or after the effective date of this Act.
______________________________
LINDA UPMEYERSpeaker of the House______________________________
CHARLES SCHNEIDERPresident of the Senate I hereby certify that this bill originated in the House and is known as House File 327, Eighty-eighth General Assembly.______________________________
CARMINE BOALChief Clerk of the HouseApproved _______________, 2019______________________________
KIM REYNOLDSGovernorje/rn