Franchise Labor & Employment

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News & Analysis as of

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

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

Michigan Franchisors Not Joint Employers of Employees of Franchisees Absent Agreement

On March 22, 2016, Michigan joined Wisconsin, Texas, Louisiana, and Tennessee by amending its Franchise Investment Law to make it clear that unless otherwise specifically provided for in the franchise agreement, a franchisee...more

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/enforcement guidance, how these agencies are changing their view of the...more

Workplace Policy Institute Insider Report — March 2016

Littler's Workplace Policy Institute® (WPI™) presents the Insider Report, a monthly newsletter detailing key labor, employment, and benefits policy developments at the federal, state, local and global levels. This month's...more

New DOL Joint Employment Standards Affect Auto Employers

Joint employer relationships are commonplace in the automotive industry. From auto makers that contract with other companies for parts to auto dealers that utilize franchise arrangements, the auto industry is reliant on joint...more

The Complex World of Joint Employment

Here’s Wikipedia’s definition of joint employment: Joint employment, or co-employment, is the sharing of control and supervision of an employee’s activity among two or more business entities....more

NLRB: Joint Liability Inquiry Can Precede Finding on Merits of Underlying Unfair Labor Practice Charge

In the latest development in the National Labor Relations Board's ongoing efforts to redefine joint employer status, the board has determined that an employer (whether franchisee or franchisor) can be named a joint employer...more

Department of Labor Announces Broad Interpretation of Joint Employment

The U.S. Department of Labor, Wage & Hour Division (DOL) issued guidance from its administrator in late January, espousing a broad view of joint employment under the Fair Labor Standards Act (FLSA). The guidance, issued in...more

Joint Employment Challenges Continue in 2016

The legal concept of “joint employment” exists when a person is employed by two or more entities, such that the employers are responsible, individually and jointly, to the employee for compliance with a particular statute or...more

Adventures in Joint Employment: the Browning-Ferris Saga Continues with an Appeal to the D.C. Circuit Court of Appeals

Last week, Browning-Ferris Industries, the California-based waste management company, appealed two decisions issued by the National Labor Relations Board related to the definition of joint employer. Its appeal to the U.S....more

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