Jerrod Shouse, state director of the National Federation of Independent Business, said today that Oklahoma’s leading small-business association is key-voting House Bill 3164, a measure that would clarify seasonal employment and offer protection to franchisees.
NFIB/Oklahoma has informed senators that their votes on HB3164 will be monitored and report back to NFIB members, Shouse said.
“This one bill addresses two issues that are especially important to small businesses,” Shouse said. “Our members are asking the Senate to vote ‘yes’ on H.B. 3164 and protect small businesses from higher taxes and frivolous lawsuits.”
Section 1 of the bill allows a business that only operates for six months a year or less to seek designation as a “seasonal employer.”
“The bill provides guidance and protections for both the seasonal worker and seasonal employer,” Shouse said. Seasonal workers would be restricted to unemployment compensation only if they are laid off during the normal seasonal work period. Unemployment claims are one of the factors used to calculate a business’ unemployment tax rate.
Section 2 of the bill addresses a recent decision by the National Labor Relations Board concerning the legal rights of franchisees.
An individual who pays to use a company’s trademarks and methods is called a franchisee. Franchisees may sign a contract allowing them to open a copy of the company’s business–a restaurant, for example. So, the company’s name may be on the sign, but the franchisee is the sole owner of the business.
Last summer, the National Labor Relations Board issued a ruling concerning the relationship between employers, franchise arrangements, and independent contractors. In its ruling, the NLRB expanded the definition to include both indirect, direct, and even potential, unexercised control over employees in a joint employer determination.
“The bottom line is that the NLRB actions in expanding the definition of a joint employer to include a franchisee’s national brand destroy the franchise model leading to industry consolidation, store closures, a loss of jobs and economic activity and entrepreneurial investment,” Shouse said.
“That’s why we’re urging the Oklahoma Senate to pass House Bill 3164,” Shouse said.
To learn more, visit www.NFIB.com/OK or follow @NFIB_OK on Twitter.
