The National Labor Relations Board (“NLRB’) recently issued several precedent-breaking decisions that have the potential to expose franchisors to joint employer liability across the county.
On October 12, 2016, a new development arose in the appeal of one such NLRB matter between franchisor McDonald’s USA, LLC (“McDonald’s”), its franchisees, and a number of employees, over this joint employer dispute. After 65 days of hearings before the NLRB, the parties agreed to sever the complaints involving franchisees in New York and Philadelphia from the complaints that arose in Chicago, Indianapolis, Sacramento and Los Angeles. (McDonald’s USA, LLC, NLRB ALJ, No. 02-CA-093893, order 10/12/16). Those cases will be held in abeyance until a final determination is reached on the New York and Philadelphia matters. Administrative Law Judge Lauren Esposito approved the agreement to sever in the interest of efficiency. Continue Reading