SPONSOR: Overcast
COMMITTEE ACTION: Voted "Do Pass" by the Standing Committee on Economic Development by a vote of 13 to 0. Voted "Do Pass" by the Standing Committee on Rules-Administrative by a vote of 8 to 0.
This bill provides that neither a franchisee nor a franchisee's employees will be considered an employee of a franchisor for any purpose, unless the franchisor exercises direct and immediate control over the hiring, termination, discipline, and direction of the franchisee's employees.
This bill is similar to SB 320 (2025).
PROPONENTS: Supporters say that this bill is consistent with federal rule, and creates a welcoming environment for businesses . Supporters also state this bill ensures any liability falls on the franchisee owner and not on the owner of the corporation. Proponents of the bill state this bill provides legal clarification and removes gray areas for businesses and employees when lawsuits arise.
Testifying in person for the bill were Representative Overcast; US Chamber of Commerce; American Hotel and Lodging Association; Missouri Chamber of Commerce and Industry; Missouri Hotel and Lodging Association.
OPPONENTS: There was no opposition voiced to the committee.
Written testimony has been submitted for this bill. The full written testimony and witnesses testifying online can be found under Testimony on the bill page on the House website.
Statutes affected: