News & Analysis as of

Wage and Hour Franchisors

McCarter & English, LLP

NLRB Establishes New Joint Employer Rule

McCarter & English, LLP on

The National Labor Relations Act (NLRA) governs private sector labor/management relations in the United States. Under the NLRA, employers have certain responsibilities and restrictions with regard to their employees,...more

Hogan Lovells

U.S. NLRB makes it more likely to deem companies as joint-employers

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The National Labor Relations Board (NLRB or the Board) issued its final rule on the latest standard for joint-employer status on October 26, 2023, with an effective date of December 26, 2023. Joint-employer status is crucial...more

Sherman & Howard L.L.C.

The NLRB’s Joint Employer Rule – Warning: Objects [of Liability] May Be Closer Than They Appear

Sherman & Howard L.L.C. on

Adding to the list of employer-punishing labor changes this year, on October 26, 2023, the National Labor Relations Board (NLRB or Board) issued a final rule establishing a joint employer standard. The standard defines when a...more

Roetzel & Andress

The National Labor Relations Board Issues Expansive Joint Employer Rule

Roetzel & Andress on

Do you use a staffing agency to provide workers for your day-to-day operations? Are you a franchisor that licenses your trademark and business model to franchisees? If you answered “yes” to either of these questions,...more

Fox Rothschild LLP

NLRB Wants Employers to be Responsible for Contract, Franchise Workers

Fox Rothschild LLP on

In the latest of a string of decisions seemingly supporting President Biden’s claim of being the most pro-union president in history, the National Labor Relations Board (NLRB) this week issued its Final Rule on the Standard...more

Jackson Lewis P.C.

Back to FAST Recovery: Business and Labor Reach Agreement

Jackson Lewis P.C. on

On September 11, 2023, the coalition of California businesses announced its agreement with labor unions to withdraw their referendum challenging Assembly Bill (AB) 257, which created the FAST Recovery Act, from next year’s...more

Littler

Hot Take(out): California Fast Food Franchises Could Face Increased Liability

Littler on

It’s been a busy spring at the California state capitol.  Among the few thousand bills being considered by California’s legislature this year, AB 1228 stands out.  The bill would essentially create joint liability for...more

ArentFox Schiff

California Bill Would Make Fast-Food Franchisors Liable for Franchisees' Violation of Wage Law

ArentFox Schiff on

California Assembly Bill 1228 (A.B.1228), otherwise known as the Fast-Food Franchisor Responsibility Act, was introduced on February 16, 2023. If passed into law, fast food restaurant franchisors and franchisees will share...more

DirectEmployers Association

OFCCP Week In Review: February 2023 #4

Friday, February 17, 2023: In the Ongoing Push to Make More Companies Liable for Worker Employment Claims, California Again Seeks to Set the Pace - The great seal of the State of CaliforniaAs more and more federal and...more

Littler

California Legislature Serves Up Bill Proposing Joint Employer Liability For Fast Food Franchisors

Littler on

With one day left to spare before the deadline to introduce new bills, on February 16, 2023, California Assemblymember Chris Holden (D-41) introduced Assembly Bill 1228, the “Fast Food Franchisor Responsibility Act.”  This...more

Lathrop GPM

Ninth Circuit Affirms Decision that Franchisees Are Not Employees of Franchisor

Lathrop GPM on

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

Fox Rothschild LLP

Think FAST: California Enacts Fast Food Accountability and Standards Recovery Act

Fox Rothschild LLP on

On Labor Day, with support from prominent unions, California Gov. Gavin Newsom signed the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), which will significantly affect fast-food restaurants in the...more

Jackson Lewis P.C.

Referendum Seeks to Send FAST Recovery Act to California Voters

Jackson Lewis P.C. on

On Labor Day, Governor Newsom signed Assembly Bill (AB) 257, known as the FAST Recovery Act. The Act establishes a Fast Food Council comprising fast food employees, worker advocates, franchisors, franchisees, and government...more

Seyfarth Shaw LLP

Final Round: Employment Bills Making The Cut To The Governor

Seyfarth Shaw LLP on

Seyfarth Synopsis: Having run the legislative gauntlet, the fate of California’s 2022 employment bills now lie with Governor Newsom’s pen, including bills that would expand pay data reporting and pay scale requirements,...more

Locke Lord LLP

Home Health Care, Franchise, and Food Industries Under Attack: April 2022 IC Legal News Update

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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

Fisher Phillips

Massachusetts Franchise Owner-Operators May Be Employees of Franchisors

Fisher Phillips on

The Massachusetts Supreme Judicial Court just held that 7-Eleven franchisees may be employees of 7-Eleven under Massachusetts wage and hour law. The March 24 decision in Dhananjay Patel v. 7-Eleven, Inc. will have significant...more

Fox Rothschild LLP

Franchisors: We Offer The Following Prescription for Your Consideration

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Recently we discussed the headwinds that remain for the franchise community as a result of policy changes coming from Washington and the various state capitols. What should franchisors consider as they swim in this sea of...more

Bressler, Amery & Ross, P.C.

The Franchisor-Franchisee Worker Classification Conundrum

A Recent Second Circuit Decision Rejects Franchisees’ Claims that Franchisor’s Deductions from Revenue Violated State Minimum Wage and Anti-Kickback Laws, but Leaves the Door Open for Franchisor-Franchisee Relationships to be...more

Locke Lord LLP

Employee or Franchisee? Or Both? September 2021 News Update

Locke Lord LLP on

In the same month that 7-Eleven prevailed in a federal court trial where convenience store franchisees claimed they were not independent contractors but rather employees entitled to the protections of state labor laws, a...more

Lathrop GPM

Franchise Memorandum - Issue #270

Lathrop GPM on

Second Circuit Affirms Dismissal of Franchisees’ Minimum Wage and Unjust Enrichment Claims - A divided panel of the Second Circuit Court of Appeals has concluded that claims of improper wage deductions and unjust...more

Polsinelli

Labor Department Rescinds Pro-Franchise Joint-Employment Rule

Polsinelli on

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

Ervin Cohen & Jessup LLP

FAST Act (AB-257) Narrowly Defeated

On June 3, 2021, AB-257, the Fast Food Accountability and Standards Recovery Act (the “FAST Act”) was defeated in the California Assembly, coming up three votes short of the 41 votes needed. The FAST Act would have...more

Lewitt Hackman

A Reprieve for Franchise Business Model in California

Lewitt Hackman on

California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act or AB 257) was defeated by the California Assembly on June 3, 2021. The bill was introduced by Assembly Member Lorena...more

Lewitt Hackman

Impending Doom for Franchise Business Model in California?

Lewitt Hackman on

California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act is currently pending in the California Legislature, introduced by Assembly Member Lorena Gonzalez....more

Roetzel & Andress

Department Of Labor Seeks To Rescind The Trump Administration’s Joint-Employer Rule

Roetzel & Andress on

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

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