A new law in Oklahoma recognizes the important role that franchised businesses play in the economy and clarifies the definition of franchisees and employees, the International Franchise Association said today.
In defining the term “employee,” the new law, signed June 11, clarifies that individuals who are party to a franchise agreement, as governed by 16 CFR 436, shall not be misconstrued as employees.
“In taking this step to protect the investment of franchise business owners, the Oklahoma legislature has illustrated the importance of the franchise business model in creating jobs and putting the economy back on the right track,” said IFA Vice President of Government Relations David French. “We applaud Oklahoma lawmakers for ensuring that the more than 12,000 franchise businesses in the state are protected from misapplication of wage and labor laws.”
