State Joint Employer Legislation Clears Commerce Committee

February 7, 2019

On Wednesday, the House Commerce Committee took up HSB 5, which is a bill relating to the franchisor-franchisee relationship for the purposes of certain unemployment laws. The legislation would restore a more traditional definition of the joint employer standard and provide clarity and consistency for both franchisors and franchisees concerning their relationship. The committee amended the legislation to ensure it only applies to the franchise section of the Iowa code. The bill cleared the Commerce Committee 13-10 and it now heads to the floor. A Senate subcommittee also considered SSB 1110, a companion bill, on Thursday afternoon. ABI testified in favor of both bills during their respective subcommittees.