News & Analysis as of September 18, 2024

Franchisors

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The National Labor Relations Board is an independent agency of the United States federal government created in 1935 as part of the National Labor Relations Act. The Board consists of five presidentially-appointed members, who are charged with overseeing union elections and hearing complaints of unfair labor practices under the NLRA. less -

The Slow Down Of The FAST Act: Monumental Deal Reached Which Could End Joint Employer Liability And Other Threats To The Franchise...

Buchalter on 9/12/2023

On September 11, 2023, an unprecedented deal was announced by labor groups and the fast food industry which would give California workers a $20 minimum wage and repeal The Fast Food Accountability and Standards Recovery Act...more

Staying in the FAST Lane: An Overview of New 2023 Employment Laws for California Franchisors and Franchisees

Buchalter on 2/14/2023

Each New Year in California comes with several new laws that impact the workplace, including those in the franchising industry. With each year that passes, the California Legislature reminds us that their intent is to provide...more

One Small Win for McDonald's, and One Giant Victory for Small Business Owners

FordHarrison on 12/30/2019

On Thursday, December 12, 2019, the National Labor Relations Board (NLRB or the Board) ordered an administrative law judge to approve a settlement previously reached between McDonald’s, its franchisees, and workers. Although...more

NLRB Judge Rejects Proposed Settlement In McDonald’s Joint Employer Case

Polsinelli on 7/20/2018

On July 17, 2018, a National Labor Relations Board (“Board”) Administrative Law Judge (“ALJ”) rejected a proposed settlement that would have concluded the closely-watched consolidated unfair labor practice case against...more

Food and Beverage Law Update: October 2015

Holland & Knight LLP on 10/29/2015

Labor and Employment - Plaintiff Wage and Hour Lawsuits Continue to Climb - Wage and hour litigation has become what some call the new "workplace revolution." Data from the Federal Judicial Center indicates that...more

The Evolving Definition of Joint Employers

Fisher Phillips on 6/3/2015

The National Labor Relations Board and various union-backed organizations are ratcheting up efforts aimed at changing the landscape of who qualifies as a joint employer. Right now, these aggressive efforts are most pronounced...more

The Next Wave of Joint Employment Litigation

Polsinelli on 2/10/2015

A looming surge of cases threatens to expand the joint employment doctrine and fundamentally alter the operations of franchisors, retailers, and businesses utilizing independent contractors within the four walls of their...more

Franchisor Liability for Franchisee Employment Decisions: The NLRB's General Counsel Addresses the Move to Expand the...

Baker Donelson on 12/23/2014

In July 2014, the National Labor Relations Board (NLRB) took the unexpected step of authorizing complaints against McDonald's USA, LLC and some of its franchisees for the franchisees' responses to employee protests. The Board...more

Who's in Control Here? California's Supreme Court Establishes New Standards for Potential Franchisor Liability for Employee Tort...

Littler on 9/3/2014

On August 28, 2014, the Supreme Court of California, in Patterson v. Domino's Pizza, LLC, decided whether a franchisor was entitled to summary judgment on the plaintiff's claims that the franchisor was vicariously liable for...more

Food, Folks, and Franchise-Wide Liability: NLRB Signals Intent to Pound Square Joint Employer Peg Into Round Franchise Hole

Foley & Lardner LLP on 8/12/2014

A big part of what makes the franchise model of business attractive to small business owners is the opportunity to own and operate their own business, but with their entrepreneurial risk backstopped by a known regional or...more

NLRB Will Charge McDonald’s as “Joint Employer” For Franchisee Labor Violations

Davis Wright Tremaine LLP on 8/6/2014

In a move with far-reaching ramifications for all businesses that license their brands to independent contractors including franchisees, the National Labor Relations Board (“NLRB”) announced on July 29, 2014 that it has...more

Franchisors Not Lovin’ It: NLRB Announces McDonald’s Named Joint Employer with Franchisees

Obermayer Rebmann Maxwell & Hippel LLP on 8/6/2014

On July 29, 2014, the National Labor Relations Board (NLRB) Office of the General Counsel announced that McDonald’s, USA, LLC will be named as a “joint employer” in at least 43 cases alleging unfair labor practices against...more

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