h_lg_2016a_2016-03-16t13:36:33z0 Hearing Summary

Date: 03/16/2016

01:37 PM -- Farm Bureau Award



Bob Winter, representing the Weld County Farm Bureau, presented an annual award recognizing Representative Lori Saine.





01:38 PM -- HB16-1154



Representative DelGrosso presented and summarized House Bill 16-1154 concerning employer definition to clarify franchisee status. This bill requires that an entity have and exercise direct authority over an employee's terms and conditions of employment in order to be classified as an employer. It also clarifies that a franchisor is not an employer of a franchisee or the franchisee's employees, except when a Colorado court makes specific findings regarding the protection of the franchisor's trademarks and brand. Finally, the bill clarifies that disputes over what constitutes the exercise of control over a franchisee are to be resolved by a court of competent jurisdiction.



Representative DelGrosso distributed and discussed amendment L.002 (Attachment A).



16HouseLocal0316AttachA.pdf



Representative DelGrosso answered questions from the committee regarding franchisee corporate structures.





01:48 PM



Representative DelGrosso answered a question regarding amendment L.002.



01:50 PM -- Scott Meiklejohn, representing the Workers' Compensation Education Association, spoke in opposition to the bill. He answered questions from the committee regarding franchisee statuses.



01:56 PM -- Lauren Martens, representing the Service Employees International Unions Colorado State Council, spoke in opposition to the bill. He discussed the concerns of low wage employee unions.



Mr. Martins answered questions regarding the potential impact to low wage employees.



02:03 PM -- Kjersten Forseth, representing the American Federation of Labor and Congress of Industrial Organizations, spoke in opposition to the bill.



Ms. Forseth answered questions regarding employee protections under a franchise. She also answered a question regarding the National Labor Relations Board and franchisee complaints.





02:13 PM



Ms. Forseth continued to answer questions regarding employee protections under a franchise.



02:15 PM -- Jeff Hanscom, representing the International Franchise Association, spoke in favor of the bill. He provided an overview of the franchise industry and discussed the franchisee status provided in the bill.



Mr. Hanscom answered a question regarding issues of wage theft and employee protections.



02:23 PM -- Edward Rothschild, representing himself, spoke in favor of the bill. He discussed his experience as a franchise owner.



Mr. Rothschild answered questions regarding the status of his employees.



02:27 PM -- Garret Gifford, representing himself, spoke in favor of the bill. He discussed his experience as a franchise owner.



02:29 PM -- Sonia Riggs, representing the Colorado Restaurant Association, spoke in favor of the bill. She discussed the relationship between franchisees and franchisors.



Ms. Riggs answered questions regarding wage theft and employee protections.





02:39 PM



The committee continued to discuss employee protections.



02:48 PM -- Laura Liss, representing the Colorado Bar Association, spoke in favor of the bill. She answered previous questions regarding to the rights of franchise employees.



02:53 PM -- Patrick Teegarden, representing the Department of Labor and Employee, spoke for information purposes only. He discussed the concerns of the department with the bill and spoke on amendment L.002.



He answered questions regarding current franchisee laws.





03:03 PM



Mr. Teegarden continued to answer questions regarding the departmental process for addressing franchise employee issues.



Representative DelGrosso discussed amendment L.002 (Attachment A).

Representative DelGrosso provided closing comments on the bill.



The committee members provided closing comments on the bill.