HR Alert

Alabama Enacts 'Franchise Business Protection Act'

Law Effective August 1, 2017

Under a new law in Alabama, the following persons may not be deemed or construed to be employees of a franchisor (except as provided in a voluntary agreement entered into between the U.S. Department of Labor and a franchisor):

  • A franchisee.
  • An employee of a franchisee.
  • An independent contractor working for a franchisee.

For purposes of the law, the terms "franchisee" and "franchisor" have the same meanings as defined in federal regulations.

Scope of Coverage
To the extent that the law does not conflict with federal law, the law will only apply to the enforcement or enactment of rules or ordinances by state agencies or local governmental bodies; and labor relations and collective bargaining.

The law takes effect on August 1, 2017. Click here to read the text of the law.


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