Missouri bill limits franchisor liability by setting direct-control test for employment relationships

Original title: EMPLOYER-EMPLOYEE RELATIONSHIP

Last action · May 5, 2026: Referred: Fiscal Review(H)Sponsors: Matthew Overcast and 3 others

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What This Bill Would Do

House Bill 1644 establishes that a or a franchisee's employee is not considered an employee of the unless the franchisor exercises direct and immediate control over hiring, firing, discipline, and daily direction. This rule applies regardless of any voluntary agreement made between the United States Department of Labor and a franchisee or franchisor.

Why it matters

Changes legal liability standards for franchise businesses operating in Missouri, determining whether parent companies share employment responsibilities and liabilities for local franchise staff.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

franchisees

Franchisees face modified legal definitions regarding whether their corporate franchisors share employment liability for local staff.

Directly affected

franchisors

Franchisors are protected from being classified as employers of their franchisees' staff unless they exercise direct and immediate control over personnel decisions.

Key Facts

Neither a franchisee nor a franchisee's employee shall be deemed an employee of the franchisor for any purpose unless direct and immediate control is exercised.
Direct and immediate control is defined as control over hiring, termination, discipline, and direction of the franchisee's employees.
The statute overrides any voluntary agreements entered into between the United States Department of Labor and a franchisee or a franchisor.
The terms "franchisee" and "franchisor" are defined by the standard set forth in 16 CFR 436.1.

Frequently Asked Questions

Does this bill apply to voluntary agreements with the Department of Labor?

Yes. The bill specifies that s are not considered employers of staff regardless of any voluntary agreement entered into between the United States Department of Labor and a franchisee or franchisor, unless direct control is exercised.

What constitutes direct and immediate control under this legislation?

Direct and immediate control specifically means exercising control over the hiring, termination, discipline, and direction of the 's employees.

What else do you want to know?

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Where This Stands

Currently passed both. The next step in the legislative lifecycle is Law.

Procedural history

32 actions

May 5, 2026HouseCommittee
Referred: Fiscal Review(H)
May 5, 2026House
Reported to the House with... (H)
May 5, 2026SenateFloor
Third Read and Passed with Amendments (S)
May 5, 2026Senate
SS Adopted (S)
May 5, 2026House
SS Offered
May 5, 2026Senate
Taken Up for Third Reading (S)

Show 26 earlier actions

Apr 21, 2026House
Placed on Informal Calendar
Apr 8, 2026SenateCommittee
SCS Reported Do Pass (S)
Mar 25, 2026SenateCommittee
SCS Voted Do Pass (S)
Mar 25, 2026Senate
Executive Session Held (S)
Mar 11, 2026Senate
Public Hearing Held (S)
Mar 10, 2026Senate
Public Hearing Scheduled (S)
Feb 26, 2026SenateCommittee
Second read and referred: Judiciary and Civil and Criminal Jurisprudence(S)
Feb 19, 2026Senate
Reported to the Senate and First Read (S)
Feb 19, 2026HouseFloor
Third Read and Passed (H)
Feb 19, 2026House
Taken Up for Third Reading (H)
Feb 17, 2026House
Perfected (H)
Feb 17, 2026House
Title of Bill - Agreed To
Feb 17, 2026House
Taken Up for Perfection (H)
Feb 16, 2026House
Placed on the Informal Perfection Calendar (H)
Feb 10, 2026HouseCommittee
Reported Do Pass (H)
Feb 10, 2026HouseCommittee
Voted Do Pass (H)
Feb 10, 2026House
Executive Session Completed (H)
Jan 29, 2026HouseCommittee
Referred: Rules - Administrative(H)
Jan 21, 2026HouseCommittee
Reported Do Pass (H)
Jan 20, 2026HouseCommittee
Voted Do Pass (H)
Jan 20, 2026House
Executive Session Completed (H)
Jan 13, 2026House
Public Hearing Completed (H)
Jan 8, 2026HouseCommittee
Referred: Economic Development(H)
Jan 8, 2026HouseFloor
Read Second Time (H)
Jan 7, 2026HouseIntroduced
Read First Time (H)
Dec 1, 2025HouseIntroduced
Prefiled (H)

Version history

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