HF4184 Summary

• Prohibits franchisors from restricting, restraining, or prohibiting franchisees from soliciting or hiring employees of other franchisees of the same franchisor or employees of the franchisor.

• Requires existing franchise agreements to be amended within one year of the effective date to remove any restrictive employment provisions that violate the prohibition.

• Employees alleging violations may bring civil actions for damages and injunctive relief, with courts awarding the greater of actual damages plus costs and attorney fees, or a $5,000 penalty.

• If no civil action is commenced, the Commissioner of Labor and Industry may assess a $5,000 per employee penalty, with all assessed penalties awarded to the affected employee.

• The bill becomes effective the day following final enactment and applies to franchise agreements entered into or amended on or after that date.