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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

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

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

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

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

FRANCHISOR 101: 10 Ways Franchisors Can Reduce Vicarious Liability Risks

The U.S. Department of Labor says McDonald's is liable for actions of franchisees. In the last three months a California federal court said McDonald's could be liable for a franchisee's alleged failure to pay overtime and...more

Employment Law Navigator – Week in Review: December 2015 #4

Last week was a big one for the EEOC. Among other things, the agency initiated a lawsuit against McDonald’s Corporate and a Missouri franchisee because the franchisee refused to provide a deaf applicant a sign language...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

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 WaronFranchising.com 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

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

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

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

Five Evolving Issues Confronting Employers in the Hospitality Industry

As the hospitality industry continues to grow and expand, one common goal is to provide all-inclusive experiences for visitors and patrons. Unfortunately, given the breadth of the goods and services offered to the public and...more

NLRB Announces New Joint Employer Standard

In July of last year, the National Labor Relations Board released an advice memorandum directing regional offices to treat the franchisors and franchisees of McDonald’s as joint employers in a series of unfair labor practice...more

National Labor Relations Board Decision Erases 30 Years of Joint Employment Precedent

The recent NLRB decision in Browning-Ferris Industries of California Inc. et al. v. Sanitary Truck Drivers and Helpers Local 350, International Brotherhood of Teamsters, erased 30 years of precedent on joint employment. The...more

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