Law Protects Against Joint-Employer Liability Between Franchisees and Franchisors

On March 6, 2017, South Dakota S.B. 137 was signed into law and provides protections against joint-employment liability. Under the new law, regardless of other laws or any voluntary agreement between the U.S. Department of Labor and a franchisor, in South Dakota a franchisee or an employee of a franchisee is not considered an employee of the franchisor. Without a specific effective date and not being an emergency measure, the law is presumably effective July 1, 2017.

Read SD S.B. 137