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LB 941

Exclude certain franchisors from being considered employers under certain labor laws

109th Legislature (2025-2026) Introduced by Loren Lippincott

Nebraska bill would exempt franchisors from employment law obligations, shifting worker protections and legal liability to individual franchise operators.

Notice of hearing for February 09, 2026
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WeVote Research Nonpartisan
Bill Summary · LB 941

Legislative bill overview

LB 941 would exempt certain franchisors from being classified as employers under Nebraska labor laws, meaning they would not be held responsible for employment-related obligations toward franchise workers. The bill narrows the definition of "employer" to exclude franchisor companies that operate under franchise business models, even if they exercise significant control over franchise operations.

Why is this important

This directly affects workers in franchise businesses—including fast food, retail, and service industries—by potentially removing a layer of employer accountability for wages, benefits, safety standards, and discrimination protections. The change could shift legal liability away from franchisor corporations toward individual franchise owners, many of whom may be small business operators with limited resources.

Potential points of contention

  • Worker protections vs. business flexibility: Labor advocates argue franchisors often control operations enough to bear employer responsibilities, while business groups contend franchisees are independent operators who shouldn't impose franchisor liability
  • Wage and safety enforcement: Exempting franchisors could complicate enforcement of minimum wage, overtime, and workplace safety laws if individual franchisees lack resources to comply
  • Definition ambiguity: The bill's language on "certain franchisors" may create litigation over which companies qualify, leaving workers in legal gray areas

Compiled from official sources — confirm details with the bill’s official record.

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