Bills Sec. 203 — Franchisors

1938 Section 3(d) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(d) ), as amended by section 202(a)(1), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this Act with regard to an employee, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the employee. . Section 16 of the Fair Labor Standards Act of 1938, as amended by section 202(c)(1), is further amended by adding at the end the following: An employer or entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this Act. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . Section 2(2) of the National Labor Relations Act ( 29 U.S.C. 152(2) ), as amended by section 202(a)(2), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this Act with regard to an employee, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the employee. . Section 12 of the National Labor Relations Act ( 29 U.S.C. 162 ), as amended by section 202(c)(2), is further amended by adding at the end the following: An employer or entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this Act. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . 1970 Section 3(5) of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 652(5) ), as amended by section 202(a)(3), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this Act with regard to an employee, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the employee. . Section 17 of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 666 ), as amended by section 202(c)(3), is further amended by adding at the end the following: An employer or other entity that is a franchisee and is found to be in violation of this Act shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this Act. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . 1977 Section 4B of the Federal Mine Safety and Health Act of 1977, as amended by section 202(a)(4), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this Act with regard to a miner, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the miner. . Section 118 of the Federal Mine Safety and Health Act of 1977, as amended by section 202(c)(4), is further amended by adding at the end the following: An operator or other entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this Act. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . Section 5(c) of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 202(a)(5), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this Act with regard to an individual who is a migrant agricultural worker or seasonal agricultural worker employed by a farm labor contractor, agricultural employer, or agricultural association, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the migrant agricultural worker or seasonal agricultural worker. . Section 505 of the Migrant and Seasonal Agricultural Worker Protection Act, as amended by section 202(c)(5), is further amended by adding at the end the following: A farm labor contractor, agricultural employer, agricultural association, or other entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this Act. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . Section 3144b of title 40, United States Code, as amended by section 202(a)(6), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this subchapter with regard to a laborer or mechanic in any case where a franchisee of the franchisor is responsible for the rights and protections of this subchapter for the laborer or mechanic. . Section 3144c of title 40, United States Code, as amended by section 202(c)(6), is further amended by adding at the end the following: A contractor, subcontractor, or other entity that is found to be in violation of this subchapter and is a franchisee shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this subchapter. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . Section 6701a of title 41, United States Code, as amended by section 202(a)(7), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this chapter with regard to a service employee in any case where a franchisee of the franchisor is responsible for the rights and protections of this chapter for the service employee. . Section 6707 of title 41, United States Code, as amended by section 202(c)(7), is further amended by adding at the end the following: A contractor, subcontractor, or other entity that is found to be in violation of this chapter and is a franchisee shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this chapter. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . Section 6501b of title 41, United States Code, as amended by section 202(a)(8), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this chapter with regard to an individual employed under a contract to which this chapter applies, in any case where a franchisee of the franchisor is responsible for the rights and protections of this chapter for the individual. . Section 6506b of title 41, United States Code, as amended by section 202(c)(8), is further amended by adding at the end the following: A contractor, subcontractor, or other entity that is found to be in violation of this chapter and is a franchisee shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this chapter. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . 1993 Section 101(4) of the Family and Medical Leave Act of 1993 ( 29 U.S.C. 2611(4) ), as amended by section 202(a)(9), is further amended by adding at the end the following: A franchisor shall also be responsible for the rights and protections of this Act with regard to an employee, in any case where a franchisee of the franchisor is responsible for the rights and protections of this Act for the employee. . Section 107 of the Family and Medical Leave Act of 1993 ( 29 U.S.C. 2617 ), as amended by section 202(c)(9), is further amended by inserting after subsection

(f)the following: An employer or other entity that is found to be in violation of this Act and is a franchisee shall have the right to indemnification as described in paragraph

(2)from the franchisor, in any case where the violation was— at the behest of the franchisor; at the direction of the franchisor; pursuant to any policies, agreements, or contractual obligations emanating from the franchisor; or due to other direct or indirect control or pressure from the franchisor. Indemnification under paragraph (1)— may be sought by a franchisee in any court of competent jurisdiction; and shall include a full recovery from the franchisor of all compensatory and punitive damages, civil monetary penalties, attorney’s fees, or other amounts required to be paid by the franchisee as a result of the violation of this Act. A franchisor shall not require or otherwise request a franchisee to waive the franchisee's right to indemnification under this subsection. If a franchisor violates subparagraph (A)— any indemnification waiver obtained shall be null and void; and the franchisor shall be subject to a civil penalty of $100,000. A franchisor shall not end a franchise agreement with, take adverse action in relation to, or otherwise discriminate against, a franchisee for pursuing indemnification under this subsection. Any franchisor who violates subparagraph

(A)shall be subject to a civil penalty of $100,000. . Section 3306(w) of the Internal Revenue Code of 1986, as amended by section 202(a)(10), is amended by adding at the end the following new paragraphs: Paragraph

(7)of section 3(d) of such Act. Subsection

(i)of section 16 of such Act. . The amendment made by paragraph

(1)shall apply to services rendered on or after January 1, 2022.

Sec. 203. Franchisors