Nebraska Franchise Practices Act Amendment

Proposed legislation in Nebraska would amend the state’s Franchise Practices Act to provide that a franchisee shall not be deemed an “employee” under Nebraska law, so long as the franchisee is a party to a franchise agreement that is in compliance with the Federal Trade Commission’s Franchise Rule. As reported in earlier versions of SGR’s Franchise Newsletter, similar legislation has been enacted or introduced in other states, including Georgia. Such legislation is largely considered a response to recent court cases in which franchisees’ employees have attempted, sometimes successfully, to hold franchisors liable for workers’ compensation benefits.

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