Franchise Labor & Employment

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Federal court certifies class of franchisee’s employees to pursue ostensible agency claims against franchisor: three takeaways

In Ochoa, et al. v. McDonald’s Corp. et al.,[1] the United States District Court for the Northern District of California recently certified a class of more than 800 current and former employees of a McDonald’s franchisee in...more

FRANCHISOR 101: Outdated FDDs and Unregistered Franchises

The California Department of Business Oversight ("DBO") recently issued three Orders against franchisors for violating California's franchise laws....more

FLSA Compliance For Franchises…and the Joint Employer Tightrope

In May, the long awaited Department of Labor’s revisions to the FLSA’s white collar exemption rules were published and have many employers, including franchisors, concerned with compliance. John Skelton, a partner in our...more

Franchisor to Be Considered Statutory Employer? PA Supreme Court to Decide

The far-reaching implications of this decision could change the existing franchise business model. Is a franchisor a statutory employer of its franchisee’s employees? The Workers’ Compensation Appeals Board thinks so,...more

Government Involvement in Noncompetes… Against a Sandwich Maker?! Jimmy John’s Slapped With Another Lawsuit, This Time Brought by...

Jimmy John’s can’t seem to escape the limelight. Last year, the company made headlines when employees hit it with a putative class action lawsuit seeking to invalidate their non-compete agreements. The District Court...more

Franchising Update

Franchising is set to undergo change following the Australian Federal election. The Senate Standing Committee on Education and Employment recently recommended further amendments to the Franchising Code of Conduct to allow...more

Hospitality Industry Law Newsletter

Who Are My Employees? The legal landscape for employers is changing. Led by the National Labor Relations Board (the “NLRB”), there is a growing trend to hold employers accountable, not only for their own employees, but...more

FRANCHISOR 101: Reducing the Risks of Joint Employer Liability

With the risk of franchisors being jointly liable for obligations to franchisee employees, and franchisees exposed to unionization of employees if their franchisor is a joint employer, we present this list of 68 steps every...more

Illinois Attorney General Sues Jimmy John’s Over Non-Competes

Last week, the Illinois Attorney General filed suit against Jimmy John’s, alleging that the company’s non-competes violate state law. These non-competes prohibit all employees, including sandwich makers, from working during...more

Attorney General Madigan Sues Jimmy John’s over Non-Compete Agreements

On Wednesday, Illinois Attorney General Lisa Madigan filed suit against fast-food franchisor Jimmy John’s and several Jimmy John’s franchisees operating in Illinois claiming that Jimmy John’s and its franchises unlawfully...more

Employment Law - June 2016

OSHA's Electronic Submission Rule Finalized - Why it matters - Three years in the making, the Occupational Health and Safety Administration (OSHA) finalized a new rule mandating the electronic submission of injury...more

Notice of Rights Enhances Trade Secret Protection

In order to access the full range of remedies the Defending Trade Secrets Act of 2016 (DTSA) offers, a trade secret owner must notify employees and contractors of certain rights they have under the DTSA....more

FRANCHISOR 101: State Bills re Franchisor Joint Employer Liability

With franchisors deeply concerned about joint liability for franchisee employees, more states are passing laws trying to prevent that from happening. Here are some states and measures that have passed: Texas enacted...more

Defend Trade Secrets Act Presents Opportunity And Challenges To Franchisors

The Defend Trade Secrets Act of 2016 ("DTSA") was signed into law on May 11, 2016 following very strong bipartisan Congressional support. The DTSA creates a new federal civil private right of action for misappropriation of...more

FRANCHISEE 101: What to Do About Franchisor’s Harmful New Policies

Franchisees aren't always excited when their franchisor introduces a new policy. But if a new policy overreaches and might doom a franchisee's business, can it be stopped before it starts?...more

The McDonald’s NLRB Case: At The Intersection Of Hot Legal And Political Issues

Despite popular belief, the fate of fast food franchises around the country does not rest in the hands of Lauren Esposito, an unelected administrative judge for the National Labor Relations Board (NLRB). Whatever decision...more

Georgia’s Restrictive Covenants Act Turns Five Years Old: Assessing the Impact of Georgia’s Law Five Years On

While the federal Defend Trade Secrets Act is garnering a great deal of attention, it’s worthwhile to remember that state law remains critically important in drafting restrictive covenants.  This week, May 11, 2016, marks the...more

New Georgia Law Says Franchisors Generally Not Employers of Franchisees or Franchisees’ Workers

The “Protecting Georgia Small Businesses Act” amends Georgia’s Labor and Industrial Relations Code to provide that neither a franchisee nor a franchisee’s employee is considered an employee of a franchisor for “any purpose.”...more

“Indirect Control” — New NLRB Joint Employer Rule Headed for Appeal

Hoteliers still reeling from the National Labor Relation Boards’ (NLRB’s) dramatic change to the legal test for joint employer liability may find some solace in the fact that this issue is destined for appellate review. In...more

FRANCHISOR 101: Wins, Losses & Lessons in Joint Employer Liability

As joint employer liability continues to develop, plaintiffs seeking deep pockets continue to claim, with some success, that franchisors are joint employers, responsible for actions of their franchisees' employees. In April,...more

Franchise & Distribution News, Number 2

Ontario Passes New Legislation Governing Tips and Gratuities - Ontario restaurants, bars and other businesses with employees who receive some of their pay through tips and gratuities will face new laws governing how...more

What’s on the Horizon for U.S. Employers in 2016?

While the upcoming U.S. Presidential election and on-going Congressional gridlock make it unlikely any new federal employment laws will be enacted in the U.S. in 2016, employers can expect federal agencies to continue their...more

Workplace Policy Institute Insider Report — April 2016

This month's edition of Littler's Workplace Policy Institute Insider Report includes articles on the Administration's push to finalize rules before the November elections, legislative and litigation steps to thwart those...more

Employment Practices Newsletter - April 2016

Is Labor Law Putting the Franchise Business Model at Risk? - Over the course of the last year, we have kept you abreast of National Labor Relations Board (NLRB) case law and Department of Labor (DOL) interpretive/...more

Top franchise decisions: two standouts from 2015

Perhaps the most significant decision last year affecting franchising was not issued by a court and did not involve a franchise system. In an August 27, 2015 decision, the National Labor Relations Board (NLRB) in...more

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