Franchise Labor & Employment

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
News & Analysis as of

NLRB Chairman Pearce and GC Griffin Face Grilling by Senate Appropriations Committee

During a May 14 Senate Appropriations Subcommittee hearing to discuss the National Labor Relations Board's FY 2016 budget, NLRB Chairman Mark Pearce and General Counsel (GC) Richard Griffin indicated the Board has no plans to...more

Aching Joints: Franchisor Avoids Liability for Franchisee's Labor Disputes

Any time an employer is involved in a franchise relationship, there are bound to be unique issues when legal disputes arise, particularly in the employment context. It is no longer surprising to see the names of any and all...more

Why Locate Your Business in New York?

New York is a great place to live and do business. The state is running an active marketing campaign to let the world know and to attract new business to the state....more

Joint Employer Status for Franchisors Sees Some Reprieve, but not Enough yet for Celebration

We noted last year that, at the behest of its General Counsel Richard Griffin, the National Labor Relations Board was looking to recast the joint employer test under the National Labor Relations Act (NLRA) within the...more

Game-Changing Developments Threaten Franchise Business Model

The National Labor Relations Board (NLRB) and Service Employees International Union (SEIU) have been coordinating attacks on the franchise business model. These activities were a primary focus for all attendees at the May...more

New NLRB Advice Memorandum Offers Glimmer of Hope to Franchisors

On April 28, 2015, the National Labor Relations Board (NLRB) issued an advice memorandum addressing when franchisors can be considered “joint employers” with their franchisees for purposes of the National Labor Relations Act...more

Proxy Access – Week of May 10 – The Trend is Clear

During the week of May 10, 2015, 8-Ks were filed that disclosed 11 shareholder sponsored proxy access proposals passed and one failed. All required three percent ownership for three years and all were opposed by the company...more

Albany Bill Would Scare Off New Biz

When businesspeople form a corporation or limited-liability company,they often establish it in the state where the principal office will be, or in a state with favorable business laws, such as Delaware. But New York, which is...more

Observations on the SEC’s Proposed Pay Versus Performance Rule

The SEC has issued a proposed rule to require companies to disclose the relationship between executive compensation and the financial performance of a company. The details of the proposed rule have been well publicized, and...more

Class Action Attempt to Void Jimmy John's Non-Competes Goes Stale

Sandwich chain Jimmy John's has been in the news lately because of non-compete agreements that employees of its franchisees sign. This is not necessarily good news for Jimmy John's, but it does underscore some interesting...more

Hospitalitas Newsletter - Spring 2015

In This Issue: - The Next Hot Trend in Economic Development: Craft Beer - Class Action Attempt to Void Jimmy John’s Non-Competes Goes Stale - Use of Customer Survey Data Upheld in Hotel Franchise...more

To Forgive, Divine: Tax Amnesty Program Signed Into Law

On Tuesday, April 27, 2015, Missouri Governor Jay Nixon signed House Bill 384, which creates a Tax Amnesty Program for taxes administered by the Missouri Department of Revenue. This includes state income taxes, franchise...more

Reimbursing Employees for Business Expenses: The FLSA Kickback Rule [Wage & Hour FAQs]

Over the last month, Domino’s has been in the news for some of the wrong reasons, with not one but two Fair Labor Standards Act (FLSA) class action lawsuits alleging that two large Domino’s franchisees paid delivery drivers...more

In Case You Missed It - Interesting Items for Corporate Counsel - April 2015

We knew someone would do this for us if we just waited long enough. A summary of early trends in proxy access responses suggests most are including the shareholder proposal and recommending a no vote. See here. Only a single...more

Restaurant Industry Alert: "Fight for $15" Planned for Tax Day

In the latest move in their two-year campaign to raise the minimum wage to $15 per hour, fast-food workers have announced plans for a major one-day walkout on April 15, 2015 – Tax Day for U.S. employers. Events are planned in...more

Motor Carriers Are Liable For Injuries to Drivers of Leased Vehicles Who Are Classified As Independent Contractors

Jose Vargas v. FMI, Inc. et al. - In Vargas, California’s Second Appellate District held that the Privette doctrine does not shield a motor carrier operating under a federal franchise from liability for tort injuries...more

New York State Tax Department Releases Guidance on Tax Reform Legislation

The New York State Department of Taxation and Finance (the Department) has been issuing guidance explaining the 2014 corporate tax reform legislation (generally effective on January 1, 2015) through a series of questions and...more

March 2015 Independent Contractor Compliance and Misclassification News Update

This past month’s headline developments involve three major developments in the area of independent contractor (IC) misclassification. The first case involves a large department store that agreed to pay most of the costs of...more

Seattle's $15 Minimum Wage Ordinance Becomes Law

Seattle's Minimum Wage Ordinance becomes law on April 1, 2015, raising the minimum hourly wage for Seattle's lowest paid workers. On March 30, 2015 the City's new Office of Labor Standards released the final regulations under...more

Court Applies Concepcion And Compels Arbitration, Rejecting Claim That Agreement Precluded “Effective Vindication Of State...

In a putative class action alleging violation of Pennsylvania labor laws, unfair trade practices, and other state law claims brought by a franchisee against the franchisor and two subsidiaries, the court stayed the...more

Top franchise matters of 2014

DLA Piper IPT partners Barry Heller, John Verhey and John Hughes recently conducted a webinar reviewing 2014’s top franchise decisions. Three significant 2014 matters are summarized below. 1. In Patterson v. Domino’s...more

NLRB GC Release Report Offering Employers Guidance on Handbook Policies

The National Labor Relations Board’s Office of General Counsel recently released a Report of the General Counsel Concerning Employer Rules, which is apparently designed to offer guidance to employers regarding workplace...more

Feds Fast-Forward "Fissured" Focus

As David Weil, the still relatively new United States Department of Labor (DOL) Wage and Hour Administrator describes it, an industry is “fissured” when large companies no longer directly employ the workers that produce their...more

Testing the “Joint Employer” Waters

PK Law recently reported on the filing of a complaint by the General Counsel for the National Labor Relations Board (“NLRB”) against McDonald’s Corporation to the effect that McDonald’s was a “joint employer” with its...more

Blog: ISS Announces Its Position On Proxy Access And Exclusion Of Shareholder Proposals

Yesterday, ISS issued long-awaited FAQs regarding its policy with respect to shareholder proposals for proxy access and its position on exclusion of shareholder proposals under Rule 14a-8(i)(9). ...more

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