Substitute House Bill 494 - Summary

• Specifies that franchisors are NOT considered employers of franchisees or franchisee employees for purposes of minimum wage, overtime pay, workers' compensation, unemployment compensation, and income tax laws, unless the franchisor agrees in writing or a court determines the franchisor exercises unusual control over the franchisee.

• Establishes a women-owned business enterprise (WOBE) program requiring the Director of Administrative Services to create certification procedures, maintain a public list of certified businesses, and assist state agencies in identifying and utilizing WOBEs in contracting.

• Modifies gift card regulations to require a minimum 2-year expiration date and prohibit service charges within the first two years, with exemptions for certain promotional and fundraising cards.

• Applies the franchisor exemption consistently across multiple Ohio Revised Code sections governing labor standards, workers' compensation, unemployment benefits, and income taxation.

• Requires annual reports to the Governor and General Assembly on progress of state agencies in advancing minority business enterprises, EDGE businesses, and the new women-owned business enterprise program.