HR Alert

AR: Franchisees and Their Employees Are Not Considered Employees of Franchisors

Law Effective July 31, 2017

Under a new law in Arkansas, neither a franchisee nor a franchisee's employee is deemed to be an employee of the franchisor or subfranchisor (notwithstanding a voluntary agreement entered into between the U.S. Department of Labor and a franchisee).

The law, effective July 31, 2017, also defines key terms, including "franchise," "franchisee," "franchisor," and "subfranchisor." Click here to read the text of the law.


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