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Franchises Hiring & Firing

McCarter & English, LLP

Antitrust Guidelines for Worker-Related Business Practices: How to Stay on the Right Side of Antitrust Hiring Laws During the...

The Department of Justice Antitrust Division (DOJ) and the Federal Trade Commission (FTC) (together, the Agencies) issued Antitrust Guidelines for Business Activities Affecting Workers (2025 Guidelines) in January. The 2025...more

Seyfarth Shaw LLP

The Massachusetts Supreme Judicial Court Upholds 7-Eleven Franchise System in Denying Franchisees’ Challenge to Their Independent...

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On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) answered a second certified question in Patel, et al. v. 7-Eleven, Inc., et al. (“Patel II”), a long-running case where 7-Eleven franchisees claimed they...more

Seyfarth Shaw LLP

Texas District Court Invalidates the NLRB’s Joint Employer Rule

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Last Friday, March 8, 2024, the United States District Court for the Eastern District of Texas struck down the National Labor Relations Board’s (“NLRB”) 2023 Joint Employer rule (“2023 Rule”) finding that it was both...more

Hinckley Allen

Federal Court Invalidates NLRB’s Joint Employer Standard

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Update: As we indicate below, the NLRB’s final rule regarding the standard to determine joint-employer status under the NLRA was met with a challenge in the court system, and on March 8, 2024, just days before the applicable...more

Polsinelli

Federal Court Strikes Down NLRB’s Expansive “Joint Employment” Standard

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On the eve of its going into effect, a federal court struck down the expansive joint-employment standard announced by the National Labor Relations Board (“NLRB” or “Board”) last fall. At issue is who may be considered a...more

CDF Labor Law LLP

NLRB’s New Joint Employment Rules Struck Down By Federal District Court

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In October 2023, the National Labor Relations Board (NLRB) issued its new Final Rule addressing and expanding the proper standard for determining joint employment status under the National Labor Relations Act (NLRA). This was...more

Whiteford

Employment Law Update: NLRB News You Should Know - THE JOINT EMPLOYER RULE ON HOLD, AGAIN

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In October 2023, the NLRB finalized its Joint Employer Rule (the Rule), which was slated to become effective February 26, 2024. The Rule would expand when franchisors, staffing company users and other placement firms with...more

Gray Reed

Double Trouble: NLRB Rule Change Increases Joint Employer Risk

Gray Reed on

Effective December 26, 2023, the National Labor Relations Board (NLRB) is changing one of its rules to make it easier to characterize two businesses as joint employers and potentially making one business unexpectedly liable...more

Akerman LLP - HR Defense

What’s Mine is Yours and What’s Yours is Mine: The NLRB’s New Joint Employer Rule Vastly Expands Joint Employer Status

Do you know who your employees are? It seems pretty simple – those individuals on your payroll whose employment you control and supervise, right? Not so fast, says the National Labor Relations Board (NLRB or Board)....more

Clark Hill PLC

Come Together Now: The NLRB Issues Final Rule on Joint Employers

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In a final regulation released on Oct. 26, the National Labor Relations Board (the “Board”) again redefined the concept of joint employment, this time expanding the definition and, as a result, also expanding the potential...more

Lowndes

New NLRB Rule Spells McTrouble for Some Employers

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The National Labor Relations Board (NLRB) has published a final rule regarding the Standard for Determining Joint-Employer Status under the National Labor Relations Act (NLRA). This significant development clarifies how two...more

Seyfarth Shaw LLP

The NLRB Issues a New Joint Employer Rule Providing that Indirect and/or Reserved Control of Essential Employment Terms is...

Seyfarth Shaw LLP on

On October 26, 2023, the National Labor Relations Board published its newest Standard for Determining Joint Employer Status in the Federal Register, which becomes effective 60 days from publication. In many ways, the Rule...more

Stevens & Lee

NLRB Issues Final Rule: Standard Used to Determine Joint-Employer Status

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On October 26, 2023, the National Labor Relations Board (NLRB) issued its new final rule regarding the Standard for Determining Joint-Employer Status under the National Labor Relations Act (NLRA). An employer will now be a...more

Roetzel & Andress

The National Labor Relations Board Issues Expansive Joint Employer Rule

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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

Patterson Belknap Webb & Tyler LLP

Seventh Circuit Rescues McDonald’s Workers’ Challenge to No-Poach Clause

The Seventh Circuit recently revived an antitrust challenge to a clause in McDonald’s franchise agreements barring franchises from poaching other franchises’ employees. (See our previous coverage of antitrust challenges to...more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

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In Deslandes v. McDonald’s USA LLC, issued August 25, 2023, the U.S. Court of Appeals for the Seventh Circuit overturned the dismissal of antitrust claims that challenged no-poach clauses in franchise agreements....more

Lathrop GPM

Tennessee Federal Court Grants Franchisor’s Motion to Dismiss Claims for Negligent Hiring of Franchisee

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A federal court in Tennessee recently granted a franchisor’s motion to dismiss claims alleging that a franchisor was liable for a workplace mass shooting by a franchisee. Fernald v. JFE Franchising, Inc., 2023 WL 2938312...more

Lewitt Hackman

California Fast Food Franchisors Targeted Again

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California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act (the “FAST Act” enacted in 2022), was to become effective January 1, 2023. The FAST Act established a 10-member Fast Food Sector...more

Bilzin Sumberg

Eleventh Circuit Revives Putative Class Action Against Burger King for Violation of Federal Antitrust Laws Based on No-Poaching...

Bilzin Sumberg on

Arrington v. Burger King Worldwide, Inc., No. 20-13561 (11th Cir. Aug. 31, 2022) – In October 2018, a former line cook of a Burger King franchise restaurant in Illinois, filed a class action complaint in the District Court...more

Akerman LLP - HR Defense

NLRB Proposes New Joint Employer Rule

Do you know which workers are your employees? That answer may change if a new rule proposed by the National Labor Relations Board (NLRB) takes effect. Last month, the NLRB issued a Notice of Proposed Rulemaking on the...more

Dentons

Speak Now or Forever Hold Your Peace - NLRB Proposes New Rules on Joint Employer Status

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Over the last decade, there has been confusion and a significant amount of litigation over how to determine if multiple companies are joint employers of a workforce. Joint employer status can create significant liability...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

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

Polsinelli

Labor Department Rescinds Pro-Franchise Joint-Employment Rule

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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

Roetzel & Andress

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

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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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