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Missouri SB 1363 limits joint-employer liability for franchisors unless direct control is exercised

Original title: Creates new provision relating to joint employers

Last action · January 27, 2026: Second Read and Referred S General Laws CommitteeSponsor: Nick Schroer

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Missouri SB 1363 establishes that a or a franchisee's employee is not considered an employee of the for any purpose, unless the franchisor exercises direct and immediate control over hiring, termination, discipline, and employee direction.

Why it matters

Determines legal liability and employment relationships between parent brand companies and local franchise businesses, affecting workplace regulations and potential labor claims.

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

Independent business owners operating under a franchise model have their legal employment relationship with the franchisor explicitly defined.

Directly affected

franchisor employees

Workers employed by franchise locations are subject to rules clarifying whether the parent franchisor shares employer responsibilities.

Directly affected

franchisors

Parent brand companies are shielded from joint-employer liability unless they exercise direct and immediate control over franchise staff.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

When is a franchisor considered the employer of a franchisee's worker?
A is considered an employer only if it exercises direct and immediate control over the hiring, termination, discipline, and direction of the 's employees.
How are the terms franchisee and franchisor defined in this bill?
The terms have the same meaning as provided in federal regulation 16 CFR 436.1.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

3 actions
  1. Jan 27, 2026SenateFloor
    Second Read and Referred S General Laws Committee
  2. Jan 7, 2026SenateIntroduced
    S First Read
  3. Dec 1, 2025Senate
    Prefiled

Version history

Only one version on file - nothing to compare yet. The text on record is the 5374S.01I - Introduced version. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

General Assembly, United States Department of Labor, Nick Schroer
OrganizationGeneral Assembly“103rd General Assembly”Map →
OrganizationUnited States Department of Labor“Mentioned regarding voluntary agreements with franchisees or franchisors”Map →
PersonNick Schroer“Senator introducing the bill”Map →

Sources

Open source document

www.senate.mo.gov

Analysis Score

0–100
  • Significance60
    How much this matters to a regular citizen
  • Controversy50
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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