US SB3525

Establishes that a franchisor can only be considered a joint employer of a franchisee's employees if the franchisor possesses and exercises "substantial direct and immediate control" over essential employment terms such as wages, benefits, hours, hiring, discharge, discipline, supervision, and direction

Defines "direct and immediate control" narrowly for each employment term—for example, a franchisor must actually determine specific wage rates or make actual hiring/firing decisions, not merely set brand standards, operating hours, or minimum staffing levels

Excludes from joint employer liability common franchisor activities including setting quality and safety standards, offering training materials, establishing minimum training requirements, providing operational guidance for brand protection, and allowing franchisees to participate in franchisor benefit plans

Amends both the National Labor Relations Act and Fair Labor Standards Act of 1938 to apply these joint employer standards uniformly across federal labor law

Applies only to proceedings commenced after the date of enactment, meaning pending cases would be governed by existing standards