Tag Archives: Coverall

Franchisors Are Not Joint Employers

The National Labor Relations Board (NLRB) caused an earthquake in the field of franchising with the General Counsel’s announcement July 29, 2014, of complaints against McDonald’s USA, LLC.  The NLRB General Counsel (GC) authorized the issuance of complaints of alleged labor law violations against the franchisor as the joint employer with its franchisees.  Those who brought the complaints were employees of franchisees. The prospect of being jointly liable with a franchisee for a franchisee’s labor law violations is shocking to franchisors.  The NLRB GC’s approach is a radical change from more than 30 years of settled law that respects the distinct …

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