News & Analysis as of

Franchisors Wage and Hour Department of Labor (DOL)

Foley & Lardner LLP

DOL Alters Enforcement Position on Independent Contractors

Foley & Lardner LLP on

On May 1, 2025, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden administration — a...more

McCarter & English, LLP

NLRB Establishes New Joint Employer Rule

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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

Fox Rothschild LLP

NLRB Wants Employers to be Responsible for Contract, Franchise Workers

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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

Troutman Pepper Locke

Employee or Franchisee? Or Both? September 2021 News Update

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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

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

Fox Rothschild LLP

Unintended Consequences? The Employment Battle Threatens Franchising

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The one-two punch of state and federal employment standards activity poses an existential threat to franchising; many commentators, including this one, have acknowledged that fact. But why? Did the California legislature or...more

Fox Rothschild LLP

Franchising On The Precipice: Unknowns In Transition

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Change is coming, but will it be a welcome change or a harbinger of woe? Over the last 8 years or so, the ever-changing landscape of employment laws has arguably posed an existential threat to franchising. The franchise...more

Bradley Arant Boult Cummings LLP

Joint Employment -- Still a Conundrum

For generations of small business owners franchising serves as a successful business model. Under this paradigm a franchisor grants a franchisee a license to use the franchisor’s trademark and business concept in exchange for...more

Akerman LLP - HR Defense

Employers Receive Guidance in DOL Final Joint Employer Rule

Effective March 16, 2020, employers will be able to use a four-factor balancing test in determining joint employment status under the Fair Labor Standards Act (FLSA), based on the new final rule adopted by the Department of...more

Foley & Lardner LLP

The Department of Labor’s 2020 Vision: The New Joint Employer Standard under the Fair Labor Standards Act

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A significant amount of legal activity has taken place recently in the area of joint employment. Joint employment exists when more than one entity is deemed to be a worker’s employer. Typically, a direct employer and a...more

McNees Wallace & Nurick LLC

Final Rule Issued by US Department of Labor Clarifying Joint Employment under the Fair Labor Standards Act

As a follow up to its Notice of Proposed Rulemaking issued in April 2019, the US Department of Labor (DOL) announced on January 12, 2020, the issuance of a Final Rule to revise and clarify the standard for joint employment...more

Seyfarth Shaw LLP

5 Key Trends For Workplace Class Action Litigation For 2019: Trend #3 Governmental Enforcement Litigation Trends In 2019

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Seyfarth Synopsis: The third key trend from our 16th Annual Workplace Class Action Litigation Report involves governmental enforcement litigation, including an overview of priorities and filings by the EEOC, the U.S....more

Epstein Becker & Green

DOL Issues Final Rule Addressing Joint Employer Status Under the Fair Labor Standards Act

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On Thursday, January 16, 2020, the U.S. Department of Labor’s Wage and Hour Division (“WHD”) published in the Federal Register the much-anticipated Final Rule regarding joint employer status under the Fair Labor Standards...more

Parker Poe Adams & Bernstein LLP

U.S. Labor Department Finalizes Rule Limiting Joint Employer Liability

In April 2019, the U.S. Department of Labor’s Wage and Hour Division published proposed rules dealing with the definition of joint employment under the Fair Labor Standards Act. Joint employment status means that two or more...more

Faegre Drinker Biddle & Reath LLP

DOL Final Rule Brings Clarity to the Joint Employer Standard and for Franchise Businesses

On January 13, 2020, the U.S. Department of Labor (DOL) released its highly anticipated Final Rule regarding joint employer status under the Fair Labor Standards Act (FLSA). The Final Rule was published in the Federal...more

Bricker Graydon LLP

“Are you my employer?” Department of Labor clarifies joint employer status with new final rule

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On January 16, 2020, the Department of Labor (DOL) published a final rule that brings much-needed clarity to employers on how to determine “joint employer” status under the Fair Labor Standards Act (FLSA) when an employee...more

Harris Beach Murtha PLLC

U.S. Department of Labor Issues New Joint Employer Rule Applicable to Wage and Hour Violations under the Fair Labor Standards Act

For the first time in sixty years, the U.S Department of Labor is substantively revising the regulation that articulates when two people or businesses are “joint employers” of an employee under the Fair Labor Standards Act...more

Polsinelli

Department of Labor Clarifies that Franchising Does Not Make Joint-Employer Status More Likely under FLSA

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On January 12, 2020, the U.S. Department of Labor announced a final rule that updates its regulations interpreting when multiple entities can be held liable as “joint employers” for wage-and-hour violations under the Fair...more

Ward and Smith, P.A.

US Department of Labor Issues Final Rule on Joint Employment

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On January 12, 2020, the United States Department of Labor ("USDOL") Wage and Hour Division announced a final rule regarding joint employment under the Fair Labor Standards Act ("FLSA"), to be published on January 16 of this...more

Miller Canfield

Standard to Determine FLSA Joint Employer Status Revised Under Department of Labor's Recently Adopted Final Rule

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The Department of Labor (DOL) adopted a final rule on January 12, 2020, to revise and update its Part 791 regulation regarding joint employment status under the Fair Labor Standard Act (FLSA). This final rule will be...more

ArentFox Schiff

Pain Relief In Sight: DOL Issues Final Joint-Employer Rule

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On January 12, 2020, the US Department of Labor (Department or DOL) announced that it is issuing a Final Rule that will update and revise its regulations issued under the Fair Labor Standards Act (FLSA or the Act) that...more

Ballard Spahr LLP

DOL Issues Final Rule on Joint Employer Test

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The Department of Labor (DOL) issued a final rule last weekend that codifies a majority of the changes it proposed to the joint employer test in April 2019. These changes will take effect on March 16, 2020....more

Roetzel & Andress

Department Of Labor Revises Joint Employment Regulations

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On January 12, 2020 the Department of Labor (DOL) announced a final rule revising its regulations on joint employment under the Fair Labor Standards Act (FLSA). The new rule provides guidance for determining joint employer...more

Seyfarth Shaw LLP

DOL Announces Rule Clarifying Joint Employment Under FLSA

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Seyfarth Synopsis: On January 12, 2020, the U.S. Department of Labor announced its Final Rule clarifying the issue of joint employment under the Fair Labor Standards Act. The Final Rule adopts a four-factor balancing test and...more

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