Franchise Labor & Employment

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News & Analysis as of

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

‘Twas the 2016 Franchise Renewal Season…and Labor and Regulatory matters are stirring throughout the franchise model

Last year, the franchising industry witnessed developments that significantly affected the core of its business model. These developments stem in large part from both federal and state governments taking a more active role in...more

Wage and Hour Division Issues Interpretation Confirming Expansive Standards for Joint Employment Under FLSA

If you read one thing... - The Department of Labor’s Wage and Hour Division issued new guidance emphasizing the broad standards it will apply to determine whether an employer is a “joint employer” under the FLSA. ...more

U.S. Department Of Labor Expansively Defines FLSA Joint Employment In New Guidance

The U.S. Department of Labor's Wage and Hour Division issued an Administrator's Interpretation ("AI") on January 20, 2016, setting forth the agency's approach to evaluating whether putatively separate entities are joint...more

FRANCHISOR 101: Department of Labor Weighs in on Joint Employer Liability

Recently, some plaintiffs - employees of franchisees - have tried to hold franchisors responsible for unpaid overtime and other claimed violations by franchisees they work for. They use the theory that franchisors are their...more

Who’s The Boss? The Department of Labor’s Effort to Expand Joint Employer Liability Under the FLSA

On January 20, 2016, the U.S. Department of Labor’s (“DOL”) Wage and Hour Division issued an Administrator’s Interpretation (“Interpretation”) significantly expanding the definition of a “joint employer” under the Fair Labor...more

FranCast Series: Franchisors Take Note: Broader DOL "Joint Employer" Interpretation Adds More Risk for Franchise Industry

While the franchise industry's attention has been focused on the NLRB's new and expanded joint-employer test, the Department of Labor has quietly continued its assault on what it calls the "fissured" employment landscape by...more

Fast Facts for Franchisors: The Joint Employer Doctrine – How to Minimize Your Risk

Updating your Franchise Disclosure Document, Franchise Agreement and other system documents is more important than ever. In recent decisions, the National Labor Relations Board and the Department of Labor have increasingly...more

"A New World for Joint Employers"

A recent trend in labor and employment law is the increase in entities found responsible as employers and the simultaneous expansion of the definition of employees. This is manifesting itself through a new test for joint...more

U.S. Department of Labor Issues Joint Employer Guidance

On January 20, 2016, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) released an “Administrator’s Interpretation” and related FAQs articulating the DOL’s new analytical framework for the existing joint...more

U.S. Department of Labor Expansively Defines Joint Employment Under FLSA

On January 20, 2016, the U.S. Department of Labor’s Wage & Hour Division (WHD) issued another Administrator’s Interpretation (the AI or “Guidance”) that it hopes will have a far-ranging impact on how employers do business...more

S.D.N.Y Dismisses Former Employee’s SOX and Dodd-Frank Whistleblower Claims

The U.S. District Court for the Southern District of New York recently granted a motion for summary judgment dismissing a plaintiff’s SOX and Dodd-Frank whistleblower claims. The court ruled that the plaintiff failed to...more

Minimum Wage Changes to New York’s Fast Food Industry: New Hospitality Wage Order & FAQs

As we previously discussed in May and July of this year, wage and hour requirements for the fast food industry in New York State are changing starting in the new year. These changes, which go into effect on December 31, 2015,...more

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