A new Georgia law effective July 1 provides that people who are parties to franchise agreements are not to be considered employees for purposes of workers’ compensation benefits. The legislation essentially protects franchisors from comp claims by franchisees.
The new law covers individuals “who are parties to a franchise agreement as set out by the Federal Trade Commission franchise disclosure rule, and deems that the relationship between franchisors and franchisees is governed by the rules of contract law, not those of employment law.
The International Franchise Association (IFA), which backed the bill, said it was the first such legislation in the nation.