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Franchise Agreements Corporate Counsel

Manatt, Phelps & Phillips, LLP

Fresh Off the Grill: No-Poach Agreements May Lead to Per Se Antitrust Liability, Says 7th Circuit

Introduction - No-poach agreements, wherein companies agree not to solicit or hire employees away from a competitor, have been targeted by the White House, the Federal Trade Commission (FTC) and the Antitrust Division....more

Davies Ward Phillips & Vineberg LLP

Employers Beware: Amendments to the Canadian Competition Act’s Criminal Conspiracy Provisions Take Effect

Amendments to the Canadian Competition Act (Act), taking effect on June 23, 2023, will make it a criminal offence for unaffiliated employers to agree, conspire or arrange to: •“fix, maintain, decrease or control salaries,...more

Bennett Jones LLP

Insights and Takeaways From Our Top 10 Commercial Litigation Cases of 2022

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Canadian courts rendered a number of notable decisions in the commercial litigation sphere in 2022 that made headlines for the impacts they will have on the landscape of businesses facing a dispute. Now that we are well into...more

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

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​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

Perkins Coie

Antitrust Challenge to McDonald’s No-Poach Restriction Evaluated Under the Rule of Reason

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A federal judge in the U.S. District Court for the Northern District of Illinois has held that an antitrust challenge to a “hiring restriction [that] prevented” plaintiff employees “from taking a better-paying position with a...more

Littler

Revisiting Restrictive Covenants in a Commercial Setting: The California Supreme Court Applies a Less Aggressive Approach

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California is known for having the most aggressive approach among the states regarding restraints on profession, trade, and business. Specifically, California Business and Professions Code section 16600 codifies this...more

Faegre Drinker Biddle & Reath LLP

Franchisor had no Duty to Protect Franchisee’s Employee From Sexual Harassment, Court Finds

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

Littler

Highest Court in Canada Says Substance, not Form, will Determine Independent Contractor or Employee Status

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A recent Supreme Court of Canada (SCC) decision considered whether a franchisee who entered into a franchise agreement with a franchisor was an employee or an independent contractor. The fact-specific case, Modern Cleaning...more

Akin Gump Strauss Hauer & Feld LLP

A Fresh Approach to No-Poach Provisions in Franchise Agreements

• 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

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

NLRB Decision Shines Spotlight on “Entrepreneurial Opportunity,” Returns to Prior Independent Contractor Analysis

On January 25, 2019, the National Labor Relations Board issued a decision friendly to businesses—particularly those operating in the gig economy—in SuperShuttle DFW, Inc., 367 NLRB No. 75 (2019). The Board’s decision marks a...more

Cozen O'Connor

2018 State AG Round-Up & Trends For 2019

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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

Jackson Lewis P.C.

State Attorneys General Step Up Antitrust Probes Of Franchise Industry Hiring Practices

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In the midst of a federal effort to ramp up antitrust prosecutions of companies agreeing not to recruit or hire each other’s employees special scrutiny – and criticism – has been directed toward the use of no-poach agreements...more

Troutman Pepper

No-Poach Agreements Targeted by Plaintiffs, Enforcement Agencies and Senators

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Agreements among companies to not hire each other’s workers are more risky than ever. The DOJ’s Assistant Attorney General for the Antitrust Division, Makan Delrahim, stated on January 19 that the division has criminal cases...more

Parker Poe Adams & Bernstein LLP

Employees Again Sue Jimmy John's Based on Hiring Restriction

A few years ago, the Jimmy John’s sandwich restaurant chain ran into problems over noncompetition agreements entered into with hourly workers at its franchisees’ stores. Several state attorneys general contended that...more

Troutman Pepper

Federal Court Reinforces That Franchisors Should Control Advertising to Ensure Uniformity

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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

Troutman Pepper

Your Own Agreements Can Be Your Worst Enemy in IC Misclassification Cases

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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

Dickinson Wright

Joint / Related / Common Employers: Are You at Risk

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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

Troutman Pepper

September 2016 Independent Contractor Misclassification and Compliance News Update

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The past month’s judicial and administrative activity in the area of IC misclassification reflects the wide range of industries facing these types of claims: communications; cleaning services; transportation and delivery...more

Troutman Pepper

Lessons Unlearned: Franchise and Independent Contractor Agreements Can Be Kiss of Death

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The Third Circuit’s decision is a pointed reminder to franchisors, as well as businesses that use independent contractors, that the form of their agreements can either serve their legal interests or harm them in employee...more

K&L Gates LLP

‘Twas the 2016 Franchise Renewal Season…and Labor and Regulatory matters are stirring throughout the franchise model

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Last year, the franchising industry witnessed developments that significantly affected the core of its business model. These developments stem in large part from both federal and state governments taking a more active role in...more

Arnall Golden Gregory LLP

Fast Facts for Franchisors: The Joint Employer Doctrine – How to Minimize Your Risk

Updating your Franchise Disclosure Document, Franchise Agreement and other system documents is more important than ever. In recent decisions, the National Labor Relations Board and the Department of Labor have increasingly...more

Seyfarth Shaw LLP

IFA Seeks OSHA Explanation of Applying a New Joint Employer Standard

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The International Franchise Association (IFA) has filed a Freedom of Information Act (FOIA) request with the Occupational Safety & Health Administration (OSHA) asking for the rationale behind questions that its inspectors are...more

Littler

The NLRB Refuses to Require its General Counsel to Explain the Joint Employer Case Against McDonald's

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The National Labor Relations Board continues the string of controversial moves in its unfair labor practice cases against McDonald’s. In December 2014, the NLRB’s General Counsel filed thirteen complaints naming the...more

Bradley Arant Boult Cummings LLP

It’s All in the Family: Shifting Standards for Joint-Employer Liability

The concept of joint-employer liability is popping up in the news a lot again. This is because the NLRB is taking a more aggressive view on joint-employer standards under the National Labor Relations Act, particularly as to...more

Faegre Drinker Biddle & Reath LLP

NLRB Office of General Counsel Alleges Franchisor Is Liable for Claims of Its Franchisees' Employees

On December 19, 2014, the National Labor Relations Board's (NLRB) Office of General Counsel took another step forward in its effort to erase the line between franchisors and franchisees. In a controversial move, the Office of...more

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