Texas Labor Law Amended for Franchisors

The Texas Labor Code has been amended by state law to say a franchisor is not considered an employer for claims related to employment discrimination, wage payment, the Texas Minimum Wage Act, and the Texas Workers’ Compensation Act, among other laws. A Texas State Senator introduced the bill because of franchisors’ concerns that recent NLRB actions targeted them for franchisees’ labor law violations. The bill’s author said that the NLRB actions “called the common understanding of a franchisor-franchisee relationship into question.”