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Franchise Updates

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.

Department of Labor withdraws joint employer guidance

by McAfee & Taft on

A joint employer relationship can arise in circumstances where an individual performs work for two entities that share control over how that individual performs his/her work. Although joint employment relationships are most...more

Appellate Court Notes

by Pullman & Comley, LLC on

Supreme Court Advance Release Opinions: - SC19799 - Middlebury v. Connecticut Siting Council Neighbors unsuccessfully challenged the modification of an approval for a new power plant before the Siting Council claiming...more

Old Grounds: A Lack of Prop 65 Warnings Brew Trouble for Coffee Franchisors

by Lewitt Hackman on

California Prop 65 warnings – many residents barely notice these anymore, as we’ve lived with Safe Drinking Water and Toxic Enforcement Act notices for over 30 years now. They appear at gas pumps; in apartment and office...more

Food & Beverage Litigation Update | June 2017 #3

FDA Delays Compliance Date for Nutrition Facts Labeling - The U.S. Food and Drug Administration (FDA) has announced that it will postpone the deadline for food companies to use a revised Nutrition Facts label on packaged...more

Executive Order and Legislation on Apprenticeship Aim to Give Employers More Flexibility

by Littler on

The day after Senators introduced bipartisan legislation to promote apprenticeships, President Trump signed an executive order to achieve the same end. On June 15, the president signed an executive order (EO): Expanding...more

Putative Class and Collective Action Under Enjoined U.S. DOL Overtime Rule Appears to Face Strong Argument for Dismissal

by Littler on

On June 7, 2107, a plaintiff brought a putative class and collective action against Chipotle for alleged violations of the Fair Labor Standards Act and New Jersey’s Wage and Hour Law. The plaintiff asserts the company...more

NYC Enacts "Fair Work Week" Laws for Retail and Fast Food Employees

by FordHarrison on

New York City’s new package of “Fair Work Week” laws, which go into effect on November 27, 2017, will create new and burdensome scheduling and record-keeping requirements for retailers and fast food establishments, including...more

Franchise Law: Burden of Joint Employer Just Got a Little Lighter

by Lewitt Hackman on

Direct control, indirect control…these are the employment litigation phrases that had franchisors cowering in duck-and-cover positions over the last few years. But the Department of Labor just issued a statement to breathe...more

Kentucky Fried Chicken Sued By EEOC For Disability Discrimination

Owner Fired Employee for Taking Prescribed Medications for Bipolar Disorder, Federal Agency Charges - ATLANTA - Hester Foods, Inc., the operator of a Kentucky Fried Chicken restaurant franchise in Dublin, Ga., violated...more

USDOL Withdraws Joint Employment and Independent Contractor Guidance

by FordHarrison on

The recent announcement by Secretary of Labor Alexander Acosta to rescind Administrator’s Interpretation Nos. 2015-1 and 2016-1 should allow employers more latitude to hire independent contractors by removing the restrictive...more

May 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

This update of May 2017 developments in the area of independent contractor misclassification and compliance highlights three key legislative developments: the enactment of two new laws (one in New York City and the other in...more

U.S. Secretary of Labor Withdraws Informal Guidance on Joint Employment and Independent Contractors

by Ballard Spahr LLP on

The U.S. Department of Labor (DOL) has withdrawn its 2015 and 2016 controversial informal guidance on joint employment and independent contractors. Those two guidance letters, issued during the Obama administration, greatly...more

DOL Trashes Obama-Era “Guidance”

by Sherman & Howard L.L.C. on

Wednesday the DOL announced that it was withdrawing two critical pieces of “guidance” issued under the Obama administration. The first piece addressed the DOL’s rather narrow view of who is an independent contractor (S&H...more

The U.S. Department of Labor Withdraws Obama-Era Guidance Regarding Independent Contractor versus Employee Classification

by Hirschfeld Kraemer LLP on

As we previously blogged here and here, the Obama Administration, through the U.S. Department of Labor (“DOL”) as well as the National Labor Relations Board (“NLRB”), made it clear early and often that it was going to take an...more

There's an App for That: Franchisors Fight Slumping Sales, Millenials

by Lewitt Hackman on

How has the gourmet burger gone awry? According to Fox, the better burger business dropped five percent in foot traffic at quick-serve restaurants last year, primarily because consumers are opting to “DIY” their food at home....more

New Requirements for Fast Food Employers and Retail Corporations in NYC

by Hodgson Russ LLP on

On Tuesday, May 30, 2017, New York City Mayor Bill de Blasio signed into law the “Fair Workweek” legislative package that is designed to ensure predictability of schedules and paychecks for workers in the in New York City...more

US Supreme Court: Five-Year Statute of Limitations Applies to SEC Disgorgement

by Morgan Lewis on

The Court’s opinion resolves a circuit split concerning the reach of disgorgement orders....more

Shifty Business: NYC Restricts Shift Scheduling for Retailers and Fast Food Chains

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Five new laws in New York City will impose strict limits on shift scheduling for fast food and retail industry employees. The laws will be effective 180 days after their signing, on November 26, 2017....more

Franchisors, Got Claims? Don't Let Them Spoil Like Bad Cheese

by Lewitt Hackman on

This is the tale of two restaurants, each facing trademark infringement claims under the Lanham Act brought by two, separate franchisors. The franchisees’ restaurants had three things in common: First, cheese is a key...more

New York City Enacts Laws Limiting Employers' Flexibility To Staff Employees

by Littler on

On May 24, 2017, the New York City Council passed five bills – collectively called the “Fair Workplace” legislative package – four of which significantly restrict the ability of fast food and retail employers to schedule...more

Content from PK Law: 5 Questions with Ken Jacobs 9Round

by Pessin Katz Law, P.A. on

After receiving an employee severance package from Air Products in Sparrows Point, Ken Jacobs and his wife Julie considered numerous franchise concepts before settling on 9Round, a kickboxing gym that is rapidly expanding....more

Jan-Pro International Is Not The “Employer” Of Its Franchisees And Did Not Commit Wrongdoing, Court Finds

On May 24, a federal judge in California polished off a three-state win by master franchisor, Jan-Pro Franchising International, Inc., finding that under California law, unit franchisees (subfranchisees) who had franchise...more

Franchisors: New Accounting Rules Will Significantly Impact Revenue Recognition

by Lewitt Hackman on

An updated rule issued by the Financial Accounting Standards Board (FASB) will change when most franchisors may recognize revenue on their balance sheets from the collection of initial franchise fees....more

Off-Duty Employees Had Right to "Hang Out" on Employer's Property to Publicize Dispute

by FordHarrison on

An administrative law judge recently ruled that a Pacific Northwest fast food chain violated the National Labor Relations Act (NLRA) by maintaining a policy that prohibited off-duty employees from loitering or “hanging out”...more

FRANCHISEE 101: Contract Curveballs

by Lewitt Hackman on

In every Franchise Agreement, the franchisor and franchisee promise to fulfill obligations to the other. For some promises, whether or not they were performed can be a clear "yes" or "no." For example: either a franchisee...more

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