Tag Archives: Franchisor liability
As expected, the National Labor Relations Board (NLRB) recently broadened the definition of joint employer. In a 3-2 decision, the NLRB adopted the joint employment standard recommended by the NLRB’s General Counsel. The ruling was issued August 27, 2015, in the case of Browning-Ferris Industries of California, Inc. (BFI). The Browning-Ferris case did not involve franchising, but it will have an important impact on franchising. Franchisors are now more likely to be deemed joint employers of their franchisees’ employees for purposes of compliance with the National Labor Relations Act. This is a shock to the franchise industry.