3 Key Takeaways | Is Franchising Doomed? The 2024 Version
One Month to More Effective Compliance on Business Ventures - Day 19 - Franchisor Compliance
Is Franchising Doomed?
Strategies for Negotiating with a Franchisee and Franchisor
Day 20 of One Month to More Effective Compliance for Business Ventures-Franchisor Liability
When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more
The Ninth Circuit Court of Appeals recently affirmed a decision that a group of franchisees are not employees of their franchisor, even though the trial court failed to apply the correct test. Haitayan v. 7-Eleven, Inc., 2022...more
In early September, the Eleventh Circuit reversed the district court’s judgment for defendants Burger King Corporation, Burger King Worldwide, Inc., and their ultimate parent Restaurant Brands International, Inc....more
Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more
Three industries suffered setbacks last month in independent contractor misclassification cases, while another targeted industry targeted scored a success. As we have reported in many prior blog posts, class action lawyers...more
On July 29, 2021, the U.S. Department of Labor announced it is rescinding a final rule issued just last year (2020 Final Rule) that sought to clarify the standard for finding two separate entities to be “joint employers”...more
On January 12, 2020, the U.S. Department of Labor announced a final rule that updates its regulations interpreting when multiple entities can be held liable as “joint employers” for wage-and-hour violations under the Fair...more
Seyfarth Synopsis: On January 12, 2020, the U.S. Department of Labor announced its Final Rule clarifying the issue of joint employment under the Fair Labor Standards Act. The Final Rule adopts a four-factor balancing test and...more
In an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees...more
There were several notable court and administrative cases over the past two months, but they were overshadowed by a legislative matter: the enactment of Assembly Bill 5 in California, which was the subject of our September...more
Franchisors should review their franchise agreements and practices to ensure they do not retain or exercise control over the particular aspects of their franchisees’ employment practices in light of a recent decision...more
• The Antitrust Division of the Department of Justice (DOJ) and the Federal Trade Commission (FTC) have indicated in the past that they believe that certain agreements between employers not to poach each other’s employees are...more
On Thursday, March 7, the Antitrust Division intervened in three antitrust class actions to urge the court that no-poach agreements between vertically related firms, such as between franchisor and franchisee, should be...more
Evolving antitrust treatment of so-called “no-poach” agreements continues to offer important guidance for company counsel and human resources professionals. Over the past two years, the Department of Justice (DOJ) has...more
In 2018, the Cozen O’Connor State Attorneys General Practice reported on a variety of significant investigations and enforcement actions conducted by state attorneys general (“AGs”) through the course of the year. Here, we...more
An Illinois federal judge recently found that a franchisor has the absolute right to control its franchisees’ advertising of the products and services offered under a franchise. Lokhandwala v. KFC Corp., No. 17-cv-6394 (N.D....more
• A recent National Labor Relations Board decision unexpectedly reversed a controversial Labor Board ruling issued during the Obama administration that had dramatically expanded the joint-employer doctrine and made companies...more
Just hours before Chairman Miscimarra’s tenure is to end, the National Labor Relations Board (NLRB) has issued two decisions with sweeping impact. Together, they overturn many of the Obama Board’s most controversial decisions...more
On November 14, 2017, the National Labor Relations Board (“Board”) overruled Browning-Ferris Industries, 362 NLRB No. 186 (2015) (“BFI”) and returned to the pre-BFI standard that governed joint employer liability. Hy-Brand...more
Another case has been decided adding to the back and forth in the legal world on the issues of a joint employer relationship of a franchisor and its franchisee and vicarious liability and agency between a franchisor and...more
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
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
On February 1, 2017, British Columbia’s Franchises Act (B.C. Act) and Franchises Regulation (Regulation) came into force. Although the B.C. Act follows other provincial franchise legislation closely, including with respect to...more
Companies that use independent contractors (ICs) typically require ICs to sign a contractor agreement prepared by the company. But, if it is drafted like the one reviewed in late September by the U.S. Court of Appeals for the...more
In recent years, a number of cases have emerged in both Canada and the United States discussing new implications for companies deemed to be joint and related employers. Cases both from the United States and across Canada will...more