HR Alert

North Carolina: Franchisee and Franchisee's Employees Are Not Employees of Franchisor

Law Affects Relationship Among Franchisors, Franchisees, and Franchisees' Employees

Under a new law in North Carolina, a franchisee and a franchisee's employees are not deemed to be employees of the franchisor for any purposes (e.g., state wage and hour laws, unemployment, workers' compensation, and state taxation).

Note: "Franchisee" and "franchisor" have the same definitions as set out in federal regulations.

The state law is currently in effect. The text of the law is available by clicking here.

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