Ogletree Deakins: Louisiana Legislature Ensures Franchisees Are the Sole Employers of Their Workers | Practical Law

Ogletree Deakins: Louisiana Legislature Ensures Franchisees Are the Sole Employers of Their Workers | Practical Law

This Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses a recent law passed by the Louisiana Legislature and signed by Governor Bobby Jindal clarifying that, in most circumstances, franchisees are their employees' sole employers. Act 404 appears to codify the "economic reality" test, providing that franchisors and franchisees will only be deemed joint employers if they "share or co-determine" employees' essential employment terms and conditions. The statute also amends Louisana's non-competition statute to provide that franchisees and their employees are not employees of the franchisor for any purpose. The new law took effect on August 1, 2015.

Ogletree Deakins: Louisiana Legislature Ensures Franchisees Are the Sole Employers of Their Workers

by Ogletree, Deakins, Nash, Smoak & Stewart, P.C.
Published on 31 Aug 2015 • Louisiana, United States
This Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses a recent law passed by the Louisiana Legislature and signed by Governor Bobby Jindal clarifying that, in most circumstances, franchisees are their employees' sole employers. Act 404 appears to codify the "economic reality" test, providing that franchisors and franchisees will only be deemed joint employers if they "share or co-determine" employees' essential employment terms and conditions. The statute also amends Louisana's non-competition statute to provide that franchisees and their employees are not employees of the franchisor for any purpose. The new law took effect on August 1, 2015.
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