The Justice Insiders Podcast: Meet the Securities and Exchange (and Human Resources) Commission
In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more
For the past few years, it seems franchisors have been riding a roller coaster when it comes to no-poach clauses in their franchise agreements. While for a time it seemed as though scrutiny for such clauses might be fading,...more
Two Illinois Federal Courts Deny Class Certification in Anti-Poaching Class Actions Against Franchisors - Two federal courts in Illinois have rejected motions to certify classes of employees who worked in franchised...more
An insurance coverage case brought by McDonald’s and two of its franchisees (collectively, “McDonald’s”), raised a novel question in Illinois state court. The question was whether or not costs to comply with a mandatory...more
The Department of Labor (DOL) has issued a proposed rule to rescind a Trump administration joint-employer rule. The joint-employer rule attempted to treat companies, like McDonald’s and FedEx, as joint employers of franchise...more
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Fifth Circuit Reverses Trial Court’s Excusal of Area Representative’s Tardy Renewal Notice -...more
A temporary restraining order (TRO) was granted against a McDonald’s franchise by a California Superior Court judge in response to the franchise’s alleged inability to take proper precautions to keep the community safe from...more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more
On Thursday, December 12, 2019, the National Labor Relations Board (NLRB or the Board) ordered an administrative law judge to approve a settlement previously reached between McDonald’s, its franchisees, and workers. Although...more
Q. As a franchisor, could I potentially be held liable for the wage and hour violations committed by franchisees of my organization against their employees?...more
Ninth Circuit Clarifies Joint Employer Classification - McDonald’s was not a joint employer of its franchisees’ workers, the U.S. Ninth Circuit Court of Appeals found recently in a decision that provides additional clarity...more
Seyfarth Synopsis: The Ninth Circuit’s recent decision in Salazar v. McDonald’s Corporation is welcome news for entities facing concerns about joint employment status under California law, and in particular, for franchisors....more
In a win for franchisors, the Ninth Circuit recently affirmed the district court’s summary judgment in favor of fast-food behemoth McDonald’s Corp., ruling that the franchisor is not a joint employer of its franchisees’...more
I admit I was among the scores of franchise lawyers whose blood pressure skyrocketed with passage of California’s AB 5. If a Franchise Agreement establishes an independent contractor relationship between franchisor and...more
In Salazar v. McDonald’s Corp., the plaintiff argued that McDonald’s, a franchisor of fast food restaurants, was liable for wage and hour violations as a “joint employer” of its franchisees’ employees. Last week, a panel of...more
The Ninth Circuit U.S. Court of Appeals ruled in a California lawsuit that one of the most recognized franchises, McDonald’s, does not exert sufficient direction or control over its franchisees’ employees to be considered a...more
In a case that should grab the attention of franchisors across the country, a panel of the US Court of Appeals for the Ninth Circuit has ruled that McDonald’s Corporation is not the joint employer of the employees of a...more
The Ninth Circuit ruled on October 1, 2019, that McDonald’s cannot be held liable for wage and hour violations allegedly committed by a franchisee in California because McDonald’s did not exert sufficient control over the...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
Companies doing business in California and elsewhere scored a victory yesterday in one of the fastest growing areas in employment law: joint employment claims. In a significant opinion, the U.S. Court of Appeals for the 9th...more
Over the last 18 months, no-poach provisions in franchise agreements have drawn considerable attention from academics, state attorneys general, politicians, and the class action plaintiffs’ bar. Originally published in...more
On July 17, 2018, a National Labor Relations Board (“Board”) Administrative Law Judge (“ALJ”) rejected a proposed settlement that would have concluded the closely-watched consolidated unfair labor practice case against...more
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
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