NLRB-pushback bill is good news for Georgia franchise owners.
Gov. Deal Signs Law Protecting Small Biz
Senate Bill 277—the Protecting Georgia Small
Business Act—is now law, thanks to Gov. Nathan Deal’s signature in early May.
Under this legislation, state law will be clarified to make clear that a
franchise and its staff are not considered employees of the larger franchising
corporation.
SB 277, which was sponsored by Sen. John Albers,
was introduced as a response to the National Labor Relations Board’s new
definition of a “joint employer.” In August 2015, the NLRB overturned the
existing standard for joint employers and expanded the definition to bring the
staffs of individual franchises under the control of the franchisor. This means
that the owner of a franchise would need permission from corporate to hire,
fire, and discipline their own employees at their own business. This new
standard could also make it easier for franchise workers—such as those at
fast-food chain restaurants—to unionize.
Luckily for Georgia small business owners, SB
277 protects their ability to operate their businesses as they see fit.
