Bill Text: NY S03155 | 2023-2024 | General Assembly | Introduced


Bill Title: Establishes the New York state fast food franchisor accountability act to hold fast food restaurants jointly liable for violations of certain laws, orders, rules and regulations relating to employment and worker safety.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO LABOR [S03155 Detail]

Download: New_York-2023-S03155-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          3155

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 30, 2023
                                       ___________

        Introduced  by Sen. BRISPORT -- read twice and ordered printed, and when
          printed to be committed to the Committee on Labor

        AN ACT to amend the labor law, in relation to establishing the New  York
          state fast food franchisor accountability act

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. This act shall be known and may be cited as the  "New  York
     2  state fast food franchisor accountability act".
     3    §  2.  The  labor law is amended by adding a new article 35 to read as
     4  follows:
     5                                 ARTICLE 35
     6           NEW YORK STATE FAST FOOD FRANCHISOR ACCOUNTABILITY ACT
     7  Section 1010. Short title.
     8          1011. Definitions.
     9          1012. Joint liability for fast food franchisors.
    10    § 1010. Short title. This article shall be known and may be  cited  as
    11  the "New York state fast food franchisor accountability act".
    12    § 1011. Definitions. As used in this article:
    13    1. "Fast food chain" means a set of restaurants consisting of fifty or
    14  more  establishments  nationally that either share a common brand or are
    15  characterized by standardized options for decor,  marketing,  packaging,
    16  products, and services.
    17    2. "Fast food restaurant" means any establishment in the state that is
    18  part  of a fast food chain and that, in its regular business operations,
    19  primarily provides food or beverages according to all of the following:
    20    (a) For immediate consumption, either on or off the premises;
    21    (b) To customers who order or select items and pay before eating;
    22    (c) With items prepared  in  advance,  including  items  that  may  be
    23  prepared in bulk and kept hot, or with items prepared or heated quickly;
    24  and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05846-01-3

        S. 3155                             2

     1    (d)  With  limited  or  no  table  service.  For  the purposes of this
     2  section, "table service" shall not include orders placed by  a  customer
     3  on an electronic device.
     4    3.  "Fast food restaurant franchisee" means a person or entity to whom
     5  a fast food restaurant franchise is granted.
     6    4. "Fast food restaurant franchisor" means  a  person  or  entity  who
     7  grants or has granted a fast food restaurant franchise.
     8    5.  "Fast food restaurant operator" means a person who operates a fast
     9  food restaurant.
    10    6. "Franchise," "franchisee," and "franchisor"  shall  have  the  same
    11  meanings  as  set forth in section six hundred eighty-one of the general
    12  business law.
    13    § 1012. Joint liability for fast food  franchisors.  1.  A  fast  food
    14  restaurant  franchisor  shall be responsible for ensuring that its fran-
    15  chisee complies with the following applicable employment, worker safety,
    16  public health and safety laws and orders and any  rules  or  regulations
    17  related thereto:
    18    (a) Article fifteen of the executive law.
    19    (b) All applicable sections of this chapter.
    20    (c) All applicable sections of the workers' compensation law.
    21    (d)  Orders,  including  emergency and executive orders, issued by the
    22  governor regarding employment standards or worker safety.
    23    (e) Orders issued by a county  or  municipality  regarding  employment
    24  standards or worker safety.
    25    2.  If  a fast food restaurant franchisee is liable for a violation of
    26  any of the laws or orders set forth in subdivision one of this  section,
    27  or  any  rules  or regulations related thereto, the fast food restaurant
    28  franchisor shall be jointly and severally liable for  any  penalties  or
    29  fines for such violation.
    30    3.  The  laws and orders set forth in subdivision one of this section,
    31  and any rules and regulations related thereto, may be enforced against a
    32  fast food restaurant franchisor to the same  extent  that  they  may  be
    33  enforced against the fast food restaurant franchisee.
    34    4.  A  waiver of this section, or any agreement by a fast food restau-
    35  rant franchisee to indemnify the fast  food  restaurant  franchisor  for
    36  liability  under this section, is contrary to public policy and shall be
    37  void and unenforceable.
    38    5. (a) If the terms of a franchise prevent  or  create  a  substantial
    39  barrier  to a fast food restaurant franchisee's compliance with the laws
    40  and orders set forth in subdivision one of this section, and  any  rules
    41  and  regulations  related  thereto, or any changes to such laws, orders,
    42  rules or regulations, including that the franchise does not provide  for
    43  sufficient  funds  to  allow  the  franchisee  to  comply with the laws,
    44  orders, rules, and regulations, or any changes  to  such  laws,  orders,
    45  rules  or  regulations,  the fast food restaurant franchisee may file an
    46  action against the fast  food  restaurant  franchisor  for  monetary  or
    47  injunctive relief necessary to ensure compliance.
    48    (b)  There  shall  be a rebuttable presumption that any changes in the
    49  terms of a franchise that increase the costs of  the  franchise  to  the
    50  fast  food restaurant franchisee create a substantial barrier to compli-
    51  ance with the laws and orders set  forth  in  subdivision  one  of  this
    52  section,  and any rules and regulations relating thereto, or any changes
    53  to them.
    54    6. If a fast food restaurant franchisee shows by  a  preponderance  of
    55  the  evidence  that the terms of its franchise were a substantial factor
    56  in causing any liability the  franchisee  has  actually  incurred  under

        S. 3155                             3

     1  federal,  state, or local law, the fast food restaurant franchisor shall
     2  be jointly and severally liable for the  portion  of  the  liability  to
     3  which the terms of the franchise contributed.
     4    § 3. This act shall take effect immediately.
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