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The NLRB's Joint Employer Standard: Not Just for Franchises
Keyword(s)
NLRB
The franchising world was shocked this past summer when the NLRB authorized complaints against franchisor McDonald's USA, alleging that it is a "joint employer" with its franchisees and legally responsible for violations of the National Labor Relations Act committed by "its" franchisees.
Credits
HRCI - HR (General):1.0, SHRM - PDC:1.0
Publisher
PIHRA
Description
The franchising world was shocked this past summer when the NLRB authorized complaints against franchisor McDonald's USA, alleging that it is a "joint employer" with its franchisees and legally responsible for violations of the National Labor Relations Act committed by "its" franchisees. A reworking of the NLRB's joint employer standard appears to be a certainty and will greatly impact the dynamics of the franchise relationship. In testimony before a House panel called to discuss the impact of the NLRB's actions, concerned franchisor associations testified saying, "If the NLRB decides to expand franchisor liability, then franchisor executives will need to make a decision whether to go for more control over franchisees to protect the business model, or whether we scale back control, in which case our brand may be hurt. If we can't preserve high-quality customer service, our brand may deteriorate over time." If the NLRB imposes new, more expansive standards for determining joint employer status and liability, there will be significant practical changes that will result. Those changes include making it easier for unions (1) to organize and recruit workers; and (2) for holding both the franchisee and franchisor liable for unfair labor practice charges; and (3) will impact employers who rely on temporary and contingent workers. This program will: *Provide a summary and update on this developing, significant workplace issue. *Address what this means for franchisors right now. *Discuss the significant legal implications for employers involved in a "Franchisor - Franchisee" relationship that includes greater vulnerability to union organizing campaigns, and joint employer liability for unfair labor practice charges including the financial impact for back wages. *Provide a step-by-step approach for franchisors to take to reduce and minimize potential liability.