HR Alert

KY: Franchisees or their Employees Generally Not Considered Employees of Franchisors

Law Effective June 29, 2017

A new law in Kentucky provides that franchisors (or their employees) are not employees of the franchisee, and that franchisees (or their employees) are not employees of the franchisor, for any purpose, under the following Kentucky labor laws:

  • Unemployment compensation law;
  • Occupational safety and health law;
  • The Kentucky Fair Employment Practices Law;
  • Wage and hour laws (i.e., minimum wage and overtime); and
  • The "exclusiveness of liability" provision of the workers compensation law.

Note: As the new measure amends certain labor laws, affected employers are advised to read the law in its entirety and consult a knowledgeable employment law attorney with any questions regarding the law's impact on workplace policies and practices.

The law is effective June 29, 2017. Click here to read the text of the law.

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