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Right to Control Franchisors

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Supreme Judicial Court Clarifies Franchisee vs. Employee Classification

In the ever-evolving landscape of employment law, a recent Massachusetts Supreme Judicial Court (SJC) opinion, Patel v. 7-Eleven, Inc., has shed light on a critical question: When is a franchisee considered an employee of the...more

Lewitt Hackman

Franchisor 101: Preemption Preempted

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Patel v. 7-Eleven, a case in Massachusetts, has been closely watched since the ABC test took hold of franchise relationships in employee misclassification cases across the country. A putative class of 7-Eleven franchisees...more

Lewitt Hackman

Franchisor 101: Court Delivers for Pizza Franchisor

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A Texas appeals court affirmed a lower court judgment in favor of Pizza Hut and its franchisee for claims of an alleged sexual assault by a delivery driver. The appellate court held Pizza Hut was not liable for the...more

Faegre Drinker Biddle & Reath LLP

National Labor Relations Board Tightens Standard for Joint Employer Status

A business is a joint employer of another employer’s employees only if the two employers share or codetermine the employees’ essential terms and conditions of employment, according to a recently unveiled and long-awaited...more

ArentFox Schiff

Lovin' It: Ninth Circuit Rules McDonald's is Not a Joint Employer with Franchisee in California

ArentFox Schiff on

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

ArentFox Schiff

Lovin' It: Ninth Circuit Rules McDonald's is Not a Joint Employer with Franchisee in California

ArentFox Schiff on

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

Benesch

McDonald’s Prevails Against Joint Employer Theory in Ninth Circuit

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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

Lewitt Hackman

Franchisee 101: Un-Merry Maids

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Employees of a Merry Maids home cleaning franchise brought a class action against the franchisee, the franchisor, its owner and affiliated entities claiming they were joint employers. A California federal district court...more

Polsinelli

Here we go again: NLRB Announces Proposed Rule to Restore Traditional Joint-Employer Standard

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On September 14, 2018, a three-member majority of the National Labor Relations Board (“NLRB” or “Board”) comprised of Members William Emanuel, John Ring, and Marvin Kaplan published a proposed rule in the Federal Register...more

Littler

Proposed Joint-Employer Rule Would Reverse NLRB's Controversial Browning-Ferris Case and Restore "Substantial Direct and Immediate...

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The National Labor Relations Board (the NLRB or Board) has issued a proposed rule revising the test for whether two employers are considered “joint employers” under the National Labor Relations Act (NLRA). ...more

Perkins Coie

National Labor Relations Board Reverses Course on Joint Employer Test

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The National Labor Relations Board (NLRB) issued a decision relating to the test for joint employment under the National Labor Relations Act (NLRA). The decision upheld the Administrative Law Judge’s ruling that two entities...more

Lewitt Hackman

FRANCHISOR 101: Manual Overload

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A franchisor's investment in brand standards, protection and control often comes at a cost when a consumer believing or claiming to believe the franchisor and franchisee are the same, seeks to hold a franchisor liable for a...more

Lewitt Hackman

FRANCHISOR 101: Are Franchisees Your Employees?

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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

Benesch

Franchise arrangements pose legal problem for NLRB’s proposed joint-employer standard

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The National Labor Relations Board’s general counsel, who is recommending that the Board dramatically alter the joint-employer doctrine, admitted that his proposal may run into “a problem legally” when it comes to...more

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