Franchise Labor & Employment

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
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Lessons Unlearned: Franchise and Independent Contractor Agreements Can Be Kiss of Death

The Third Circuit’s decision is a pointed reminder to franchisors, as well as businesses that use independent contractors, that the form of their agreements can either serve their legal interests or harm them in employee...more

Impact of new French labor law on franchise network

After much toing and froing, the new French labor law (sometimes also referred to as " The El Khomri Law " was finally passed by Parliament on the 8th of August 2016 . Among the articles of this Law, one of the goals of...more

Après maintes péripéties, la nouvelle loi travail française (parfois aussi dénommée “Loi El Khomri”) a finalement été promulguée...

Après maintes péripéties, la nouvelle loi travail française (parfois aussi dénommée “Loi El Khomri”) a finalement été promulguée par le parlement le 8 aout 2016. Parmi les 123 articles de cette loi, dont l’un des buts...more

Special Edition: President of International Franchise Association (IFA) Visits Lewitt Hackman

For more than 55 years, the International Franchise Association has been committed to improving methods and business practices for all participants in franchising - whether working with the Federal Trade Commission, lobbying...more

EEOC Supports NLRB’s Joint-Employer Standard before DC Circ.

On September 14, 2016 the Equal Employment Opportunity Commission (“EEOC”) filed an amicus brief in the D.C. Circuit expressing support for the National Labor Relations Board’s (“NLRB”) loosened standard of a joint employer....more

The NLRB, Franchisees, And Temporary Employees

The retail industry, due to the seasonal nature of its business, has often bolstered its workforces with temporary employees through employment agencies. This arrangement works as an efficient way for employers to manage the...more

Motel 6 Sued By EEOC for Pregnancy Discrimination

New Orleans Motel Placed Employee on Unwanted Leave of Absence, Federal Agency Charges - NEW ORLEANS - G6 Hospitality, dba Motel 6, unlawfully placed a pregnant employee on leave solely because of the fact that she was...more

FRANCHISOR 101: Non-Competes for Franchisees’ Employees

A "non-compete" provision limits the franchisee's ability, after the franchise agreement ends, to continue to work in a similar type of business to the franchise within a certain time period and geographic area. The purpose...more

What To Make Of The Wage And Hour Division's Voluntary Compliance Agreement With The Subway Franchise System

On July 26, the U.S. Department of Labor’s Wage and Hour Division entered into a “Voluntary Agreement” with the franchisor of the Subway brand, known as Doctor’s Associates, Inc., and its affiliates. The agreement...more

NY Attorney General Schneiderman Declares “War” on Non-Compete Agreements That He Perceives as Overbroad

In an initiative that is virtually without precedent in New York, in the past two months (June 15, June 22 and August 4) Attorney General Schneiderman announced agreements with three separate companies in three different...more

Employment Law This Week®: Salary History, Wage and Hour Compliance Training, Non-Competes, Misclassified Workers [Video]

We invite you to view Employment Law This Week® - a weekly rundown of the latest news in the field, brought to you by Epstein Becker Green. We look at the latest trends, important court decisions, and new developments that...more

Subway, DOL Partner to Improve FLSA Compliance

Last week, the Subway restaurant chain entered into a landmark partnership with the U.S. Department of Labor (DOL) aimed at improving Fair Labor Standards Act (FLSA) compliance among the chain's 27,000 franchisees. The DOL...more

Should Franchisors Become BFFs with WHD?

Expanding upon a relationship started in 2012, the U.S. Department of Labor’s Wage & Hour Division and Subway announced a voluntary compliance agreement earlier this week. Billed as an effort at increasing Subway’s social...more

Update For The Franchise Industry: Is Your Brand Manager Creating A “Joint Employment” Relationship With Your Franchisees’...

For several years now, franchisors have been the subject of attention in the labor and employment law arenas, and new rules and regulations are challenging franchise relationships in a number of ways. One increasingly...more

Dunkin’ Donuts Franchise to Pay $150,000 to Settle Sexual Harassment Lawsuit

Doughnut Franchise Manager Sexually Harassed Young Female Employees, Some in Their Teens, and Retaliated Against Worker Who Resisted Advances, Federal Agency Charged - NEW YORK - Hillcrest Marshall, Inc., which owns...more

FCPA Compliance and Ethics Report-271 Breaking Down Supply Chain Risk [Video]

In this episode I visit with Red Flag Group Product Development Specialist Jared Connors to discuss how to begin the process of breaking down your supply chain into manageable chunks so you can start to manage your supply...more

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

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