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Temporary Employees Franchise Improvement Act of 2009
To assist the Administrator of the Small Business Administration to determine whether a franchisee is affiliated with a franchisor in the temporary employee services industry, and for other purposes.
Summary
This bill directs the Small Business Administration to establish rules for determining whether temporary employee staffing franchisees are independent businesses or are affiliated with their franchisors. The bill requires the SBA to continue applying historically-used factors to determine affiliation status and permits the SBA to create additional rules as needed. Specifically, the bill provides that when a franchisor handles payroll and billing for a temporary staffing operation, this arrangement should not be considered evidence of affiliation if the franchisee retains control over hiring, training, assigning, and firing the temporary employees. This distinction allows temporary staffing franchisees to be classified as independent small businesses eligible for SBA assistance programs.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
2 cosponsors
- Rep. Brown, Corrine [D-FL-3] (D-FL)
- Rep. Fallin, Mary [R-OK-5] (R-OK)
Actions (3)
- Apr 30, 2009 Referred to the Subcommittee on Regulations and Healthcare . · house
- Apr 30, 2009 Referred to the House Committee on Small Business. · house
- Apr 30, 2009 Introduced in House
More bills on these subjects (8)
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Similar bills (6)
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Text versions (1)
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Full text
IN THE HOUSE OF REPRESENTATIVES
April 30, 2009
Ms. Bean (for herself and Ms. Corrine Brown of Florida) introduced the following bill; which was referred to the Committee on Small Business
A BILL
To assist the Administrator of the Small Business Administration to determine whether a franchisee is affiliated with a franchisor in the temporary employee services industry, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Temporary Employees Franchise Improvement Act of 2009”.
SEC. 2. TEMPORARY EMPLOYEE SERVICES FRANCHISES.
In determining whether a franchisee is affiliated with a franchisor in the temporary employee services industry, the Administrator of the Small Business Administration shall—
(1) continue to apply historically considered affiliation factors in determining whether a business is affiliated with another business or the franchisor in the temporary staffing industry;
(2) promulgate such other rules and regulations as necessary to determine affiliation within the temporary employee services industry as the Administrator determines consistent with the Small Business Act; and
(3) consider the processing of payroll and billing by a franchisor as customary and common practice in the temporary employee services industry that does not provide probative weight on affiliation, to the extent that the temporary staffing personnel are interviewed, hired, trained, assigned, and subject to discharge by the franchisee. <all>
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