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Labor & Employment Franchise

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

New Arizona Law Releases Chokehold on Franchise Employment Status Dilemma

by Dickinson Wright on

On March 21, 2017, Arizona Governor Doug Ducey signed into law House Bill 2322 which is Arizona’s response to the legal controversy plaguing many franchisors relative to imputed joint employment. The law holds that no...more

What State’s Law Applies To A Non-Compete Agreement And Why Does It Matter?

by Fox Rothschild LLP on

Employers frequently require employees to sign confidentiality and non-competition agreements. In most jurisdictions, these agreements are both lawful and prudent provided that they are carefully drafted. In my...more

Franchising Update

by K&L Gates LLP on

Many franchisors and other participants in the franchising sector are anticipating with concern the outcome of The Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 (Bill) which was introduced into the Federal...more

Black Car Drivers in New York City Held Independent Contractors By Federal Court of Appeals

by Pepper Hamilton LLP on

While Uber has dominated the headlines when it comes to whether drivers on their on-demand, ride-sharing platforms are independent contractors or employees, similar battles are being waged elsewhere in the car service...more

Sheppard Mullin Secures Major Victory for Chipotle in Nationwide Misclassification Action By Demonstrating Variations Among...

The Court’s opinion in Scott v. Chipotle Mexican Grill demonstrates how employers can successfully combat class action claims that employees were misclassified as exempt. The successful defense of the class certification...more

McDonald’s Corp. Dismissed from Suit Over Wage Violations at Franchises - Ostensible Agency Theory Rejected by Court

by Best Best & Krieger LLP on

A class action attempt to establish joint employer liability between franchisor McDonald’s Corporation and its franchisee for allegedly unpaid wages through an ostensible agency theory was brought to an end recently by a...more

New York Court Delivers Denial Of Certification In Papa John’s Drivers’ Class Action

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A New York federal court in Durling, et al. v. Papa John’s International, Inc., Case No. 7:16-CV-03592 (CS) (JCM) (S.D.N.Y. Mar. 29, 2017), recently denied Plaintiffs’ motion for conditional certification...more

FRANCHISOR 101: Ostensible Agency Victory

by Lewitt Hackman on

A California federal judge dealt a major blow to employees of a Bay Area McDonald's in their effort to hold the franchisor responsible for its franchisee's alleged failure to pay wages and provide meal and rest breaks. The...more

Federal Court Serves Up Satisfying Seconds For California Franchisors: No Ostensible Agency Liability For Franchisees’ Alleged...

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A federal court in California recently held that a franchisor cannot be held liable for labor code claims where it did not exercise control directly, or through an actual agency relationship with the...more

Monthly Update—Australian Labour & Employment - February 2017

by Jones Day on

MESSAGE FROM THE EDITOR - In this edition of the Update, we discuss two significant developments that are likely to have far-reaching impacts for employers and employees across Australia. First, we discuss the proposed...more

Good news for franchisors from the U.S. Department of Labor?

We write to alert our clients and contacts about some positive comments made by the acting Solicitor General pertinent to franchise entities. Specifically, as reported today in Law 360, acting Solicitor General Nicholas Geale...more

Franchise Industry Victory: McDonald's Defeats Joint Employment Claim Based on Ostensible Agency Theory

by Faegre Baker Daniels on

On March 10, 2017, a federal court in California granted summary judgment in favor of McDonald’s and dismissed joint employment claims that had been brought against it by employees of one of its franchisees. In Salazar v....more

Food and Beverage Law Update: March 2017

by Holland & Knight LLP on

Legalized Drug Use Impacts the Food and Beverage Industry - In the November 2016 general election, voters in Arkansas, Florida and North Dakota amended their state constitutions to authorize the use of marijuana for...more

Franchise and Distribution News - March 2017

by Dickinson Wright on

Is your dispute, subject to arbitration under your Franchise Agreement, going to be litigated in court? As we all know, using arbitration clauses in commercial agreements is pretty commonplace—particularly in the...more

THE LATEST: Employee “No-Poaching” Agreements Remain in the Antitrust Crosshairs

by McDermott Will & Emery on

There have been a series of investigations, class action suits and high value settlements involving agreements not to solicit employees. In addition, the Department of Justice (DOJ) Antitrust Division made a splash a few...more

Be Aware of Possible Joint Employer Status with Franchisor

The franchise model is built upon the idea that a franchisee pays for the right to use a franchisor’s brand, marketing and goodwill in launching and operating the franchisee’s business. The franchisee is generally responsible...more

Los contratos gubernamentales promueven cada vez más los objetivos relacionados con las políticas laborales

El año pasado, el gobierno federal implementó varias normas que exigen que sus contratistas cumplan con ciertos requisitos de trabajo justo. Por ejemplo, una norma federal finalizada en el mes de septiembre exige que los...more

Ostensible Agency, Hold the Class Certification: Would You Like Franchise With That?

by Seyfarth Shaw LLP on

It’s a common business model in the fast-food industry: a massive restaurant company provides the menu, the marketing—including catchy slogans and a universally recognized logo—and the basic operational standards for the...more

The Practical NLRB Advisor - Issue 4, Winter 2017

The National Labor Relations Board (NLRB) continued making life more difficult for employers in 2016. The agency issued a host of decisions that significantly expand the number and type of individuals that unions can seek to...more

Drafting Franchise Agreements After Patterson v. Domino’s : Avoiding the Minefield of Vicarious Liability and Joint Employment

by Snell & Wilmer on

Lauded as one of the most important franchise cases in the recent past, Patterson v. Domino’s established a new standard for addressing vicarious liability issues in California. In reaching its decision that Domino’s was not...more

Indiana Court of Appeals Allows Negligent Hiring Claim Despite Admission that Employee Acted Within Scope of Employment

by Reminger Co., LPA on

The Indiana Court of Appeals recently determined that a negligent hiring claim against Pizza Hut can continue to move through the trial court after finding that the trial court erred when it granted summary judgment in favor...more

FRANCHISOR 101: Are Franchisees Your Employees?

by Lewitt Hackman on

Prudent franchisors have been reducing their apparent control over franchisees' employees to reduce the risk of becoming joint employers of those employees. But could a franchisor's control over the franchisees themselves be...more

Don’t Read This: 2016 Workplace Law Year In Review

by Fisher Phillips on

Reverse psychology isn’t the only explanation for the title of this article (although, if you’ve made it this far, it seems to have worked). No, another explanation is that 2016 was a very rough year for employers when it...more

November 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Our news update for last month highlights the fact that IC misclassification lawsuits are happening across the country and in virtually every industry, both in the on-demand economy and in more traditional business sectors....more

Republican Congressmen Continues Information Demand on OSHA Joint-Employer Standard

by Jackson Lewis P.C. on

Congressional leaders again have pressed the Department of Labor for information on the Occupational Safety and Health Administration’s potential guidance to OSHA investigators on determining if there is a joint-employer...more

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