Exclude certain franchisors from being considered employers under certain labor laws

Nebraska's LB 941 clarifies that franchisors are generally not considered employers of franchisees or their employees under state labor laws, including the Workers' Compensation Act. The bill specifically excludes franchisors from employer status unless they directly control essential employment terms - such as setting wages, determining benefits, or making hiring/firing decisions. If a franchisor exercises such direct control (e.g., setting employee pay or work schedules), they would still be treated as an employer. This change directly affects franchise businesses and their employees by shifting labor law responsibility to the franchisee in most cases.