Franchise Labor & Employment

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
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Pizza franchisee jailed for wage violations

Most employers know that failing to pay minimum wage or overtime pay to their employees can lead to serious consequences. When employees file lawsuits claiming unpaid overtime wages, they can bring in their co-workers,...more

A Wake Up Call To Franchisors: The Big Mac Attack

In the wake of recent activity by the National Labor Relations Board (NLRB) concerning unfair labor practice charges against McDonald’s franchisees and franchisor McDonald’s, USA, LLC, coined by some as the “Big Mac Attack”,...more

FranCast Series: What does the new joint employer standard mean for franchising? Messrs. Griffin and Weil speak

In our last FranCast on this evolving topic, we surmised that the NLRB would not likely seek to impose joint employer status on conventionally structured franchise systems, despite the Browning Ferris decision and the highly...more

Hospitality, Food and Beverage Industry Newsletter

We are pleased to share the first edition of our Hospitality, Food and Beverage Industry Newsletter with you. This Newsletter addresses important recent legal developments affecting the hospitality and restaurant industry and...more

NLRB Discusses Joint Employment for the First Time Since Browning-Ferris

The National Labor Relations Board, in one of its first applications of the Browning-Ferris decision, gave hope to non-union contracting entities engaged in franchising and subcontracting relationships. After an extensive...more

Not Just A Union Issue: NLRB Decision Changing the Test For Joint Employer Status Affects Non-Union Employers, Too

As the National Labor Relations Board (the "Board"), traditionally the arbiter of all issues involving labor and unions, continues to broaden its reach into the world of non-union employers, it has begun to dismantle...more

The Employment Law Authority - September/October 2015

On October 16, 2015, the U.S. Department of Homeland Security (DHS) released a notice of proposed rulemaking (NPRM) concerning new rules for extending the Optional Practical Training (OPT) program for international students...more

Will the ‘joint employment’ concept take hold in Australia?

When does a person who works within a business, but isn’t on the ‘books’ of the business owner, become an employee? This issue has been litigated many times in Australia but, to date, courts have been reluctant to embrace the...more

The New California Franchise Relations Act: A Game Changer for Franchisors Operating in California

California will notch another franchise regulatory distinction come January 1, 2016: home to the toughest franchisee-protection law in the nation. On October 11, 2015, Governor Jerry Brown signed a bill amending the...more

Federal Labor Officials Step Into the Lion’s Den

Two top federal labor officials engaged in a spirited dialog with two franchise lawyer moderators at the American Bar Association’s annual Forum on Franchising in New Orleans on October 16.  The topic: whether the National...more

Strategies to Cope with New NLRB Joint Employer Ruling

On August 27, 2015 the NLRB expanded its joint-employer test, which union supporters hope will apply to franchising. See January 2015 blog entry for background. In a 3-2 decision on partisan lines, the...more

Law A' La Mode - Issue 17 October 2015

The Netherlands editorial team is delighted to bring you the 17th edition of Law a` la Mode, the quarterly legal magazine produced by DLA Piper’s Fashion, Retail and Design group for clients and contacts of the firm...more

Former NLRB Member Reemphasizes Confusion Created by Browning-Ferris Decision

Successful businesses expand. Sometimes they even franchise themselves, offering opportunities for other small businesses to take root. The National Labor Relations Board (“NLRB”) decision has expanded liability for small...more

Sixth Circuit Holds Pizza Hut Franchisee Waived Arbitration Right

The world’s largest Pizza Hut franchisee, NPC International, Inc. (“NPC”), which operates more than 1200 Pizza Hut restaurants in the United States, was sued in federal district court by employees in five separate collective...more

Religious Institutions: October 2015

Timely Topics - A non-compete clause, covenant not to compete or restrictive covenant is a contract provision under which one party agrees not to enter into or start a similar profession, trade or business in competition...more

A Legislative El Niño for California?: New 2016 Employment Laws for the State’s Private Sector Employers

Experts are predicting a 95% chance of heavier-than-usual seasonal rainfall this year in Southern California based on the phenomenon known as “El Niño.”  Did the California Legislature and its Governor produce a comparable...more

Browning-Ferris: The NLRB Redefines Joint-Employer Status

On August 27, 2015, the National Labor Relations Board (“NLRB”) diverged from three decades of precedent by broadening the reach of its joint-employer test in a decision involving Browning-Ferris Industries (“BFI”), a waste...more

NLRB’s Joint Employer Decision Could Uproot Hotel Franchise Model

The National Labor Relations Board (NLRB) has likely thrown a mammoth monkey wrench in the traditional hotel franchisor/franchisee model. On August 27, 2015, in its highly controversial Browning-Ferris Industries of...more

Congress Considers Amending NLRA to Require Direct Control for Joint Employer Findings

On September 29, the House subcommittee on Health, Employment, Labor and Pensions held a legislative hearing to consider the Protecting Local Business Opportunity Act, H.R. 3459. This bill, which is mirrored in the Senate,...more

Senate Panel Takes up Joint Employer Issue

A week after a House subcommittee held a hearing on the National Labor Relations Board's new joint employer standard, it was the Senate's turn to address the aftermath of the Board's Browning-Ferris decision. In...more

Subway franchise sued by EEOC for disability discrimination

Sheridan, IN. Employee Fired After Disclosing His HIV Status, Federal Agency Charges - INDIANAPOLIS - KAY QSRS, Inc. d/b/a Subway, violated federal law by firing an employee after the employee disclosed his disability to...more

New York "Supersizes" the Minimum Wage for Certain Fast Food Employees

On September 10, 2015, the New York Department of Labor issued an order increasing the minimum wage for fast food employees at certain fast food chain restaurants in New York State to $15 per hour. This increase fixes the...more

House Hearing Addresses NLRB's New Joint Employer Standard

Members of the House Subcommittee on Health, Employment, Labor, and Pensions held a hearing on a bill that would undo the new joint employer standard the National Labor Relations Board recently established. As previously...more

Is Your Company a Joint Employer?

Please see Chart below for more information. ...more

An Emboldened Labor Board Continues to Expand Union and Employee Protections

With a series of significant new rules and opinions, the first three quarters of 2015 have proven to be very active for the National Labor Relations Board (the “Board”). Increasingly, the Board has sought to expand the rights...more

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