On April 8, 2025, the New York State Legislature took up Senate Bill S7289, which, if enacted, would amend the New York Labor Law (NYLL) by adding a new article 35-A, otherwise known as the “New York State Fast Food Franchisor Accountability Act,” and impose joint and several liability on fast-food franchisors for certain labor law violations.

Quick Hits

• The proposed New York State Fast Food Franchisor Accountability Act would make fast-food restaurant franchisors jointly and severally liable for violations of Chapter 31 of the New York Labor Law, as well as the New York State Human Rights Law and applicable workers’ compensation laws, to the same extent that they may be enforced against fast-food restaurant franchisees.
• The proposed act aims to enhance accountability for fast-food restaurant franchisors and further protect workers’ rights in the fast-food industry.

SB S7289 would make fast-food restaurant franchisors responsible for ensuring that their franchisees are compliant with “applicable employment, worker safety, public health and safety laws and orders and any rules or regulations” to the same extent that those laws are enforceable against fast-food restaurant franchisees. In effect, if a fast-food restaurant franchisee became liable for a violation of applicable employment and worker protection laws, the fast-food restaurant franchisor would be “jointly and severally liable for any penalties or fines” in connection with any violation of laws set forth in the...

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