Delaware General Assembly

Signed 6/6/13

The General Assembly has ended, the current status is the final status.

3/19/13

B. Short

Sen. Venables

Reps. Briggs King, J. Johnson, Q. Johnson, Potter, Ramone, D. Short, Wilson

AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO SECURITY FOR FRANCHISED DISTRIBUTORS.

This Bill clarifies that parties to a franchise agreement are not within the definition of "employee" under the Wage Payment and Collection Act of the State. Franchising is well-regulated at the federal and state level to ensure that both the franchisee and franchisor can benefit from the business relationship, which is outlined in the franchise agreement. It is understood that franchisees are not employees of their franchisors, as they independently operate their businesses on a day-to-day basis. Franchisees make hiring decisions, place purchase orders, bring in new businesses and process payrolls.

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Takes effect upon being signed into law

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