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Missouri committee hears bill to codify federal joint‑employer standard for franchisors
Summary
Rep. Matthew Overcast told the House Economic Development Committee that HB1644 would codify the federal standard that a franchisor is not a joint employer unless it exercises "direct and immediate control" over hiring, firing, discipline or direction; business groups testified in favor, and no opponents appeared.
Representative Matthew Overcast introduced House Bill 16‑44 on the floor of the House Economic Development Committee, saying the measure would put into Missouri law the federal test that determines when a franchisor is a joint employer of a franchisee’s workers. "Essentially, what it does is codify what current federal law is with regard to what is a joint employer relationship," Overcast told the committee.
Overcast used a hotel example to illustrate the point: if a housekeeping employee at an independently owned hotel injures a guest, the franchisee that hired and supervised the employee — not the brand that licensed the name — should generally be the party sued unless the brand exercised direct and immediate control over hiring, firing, training or discipline.
Committee members pressed the sponsor on practical consequences. "So if I get injured… who am I going to sue? Is it Ramada, Hilton, or is it Frank’s cleaning company?" Representative Brown asked. Overcast replied the outcome rests on the facts and whether the brand actually controls the essential terms of employment.
Business groups urged passage. Michael Henderson, representing the U.S. Chamber of Commerce and the American Hotel & Lodging Association, testified the bill provides clarity and certainty after shifting federal guidance. "That is currently the law, and we just like to codify that in state law to provide certainty," Henderson said. Jared Hankinson of the Missouri Chamber of Commerce and Katie Gamble with the Missouri Hotel Lodging Association also endorsed the measure, saying it allocates liability to entities that control hiring and supervision.
No witnesses registered opposition at the hearing. The sponsor and supporters said the bill is narrowly focused on defining joint‑employer status and would not alter indemnification or other contract provisions between franchisors and franchisees. The committee closed the hearing without taking a vote; the bill will be available to be scheduled for further committee action.
