Idaho adds regulation on employee status in franchises

An Idaho law addresses when a franchisee or employee will be considered an employee of the franchisor. Under the law, neither a franchisee nor an employee of a franchisee will be considered an employee of the franchisor for any purpose, unless:

  • the franchisee or the employee of a franchisee is specifically described as an employee of the franchisor in the franchise agreement; or
  • the franchisor is found by a court or another tribunal to have exercised a type or degree of control over the franchisee or the franchisee’s employee that is not customarily exercised by a franchisor. (HB 527, Laws 2018, approved March 20, 2018 and effective 60 days after the end of the legislative session.)

Visit our News Library to read more news stories.