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Employer Liability Issues Employment Litigation Franchisors

Polsinelli

Landmark Texas Supreme Court Case Finds No “Direct Liability” for Franchisor Arising Out of Franchisee Employee’s Actions

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On May 2, 2025, the Texas Supreme Court reversed a Texas Court of Appeals’ decision that had affirmed a jury’s verdict finding a franchisor directly liable to the customer of a franchisee for actions undertaken by the...more

Lewitt Hackman

Franchisor 101: Joint Employer? Check √

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A Maryland federal district court denied a restaurant franchisor’s motion to dismiss, concluding that a restaurant manager at a franchised location alleged sufficient facts to support a finding that the franchisor is a joint...more

CDF Labor Law LLP

[Webinar] What is Happening at the NLRB? What Companies Should Know - October 24th, 10:00 am - 11:00 am PT

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Join CDF partners John Giovannone and Carolina Schwalbach for a one-hour in-depth review of the recent McLaren Macomb, Cemex and Stericycle NLRB decisions and their potential impact on union and non-union employers. If you...more

Lathrop GPM

Maine Federal Court Grants Franchisor’s Motion to Dismiss Age Discrimination Claim Brought by Franchisee’s Independent Contractor

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A federal court in Maine granted a franchisor’s motion to dismiss claims asserting that a franchisor was liable for its franchisee’s alleged age discrimination in employment. Goodwill v. Anywhere Real Est., 2023 WL 4034372...more

Lewitt Hackman

Franchisee 101: No Joint Employer, No Cry

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A federal district court in New York dismissed workplace harassment and retaliation claims against corporate affiliates of the Golden Krust Caribbean Bakery & Grill franchisor for damages as a result of workplace harassment...more

Lewitt Hackman

Franchisor 101: Salon Franchisor Weaved into Joint Employment Claims

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A Michigan federal district court denied a franchisor’s motion to dismiss claims under Title VII of the Civil Rights Act of 1964 and Michigan law, and claims alleging retaliatory termination and sexually hostile work...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

Foley Hoag LLP

Massachusetts Supreme Judicial Court Rules that Independent Contractor Test Applies to Franchisees

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On March 24, 2022, the Massachusetts Supreme Judicial Court (SJC) ruled in Patel v. 7-Eleven that the test for independent contractor status set forth in the Massachusetts independent contractor statute applies to the...more

Snell & Wilmer

The NLRB Just Made It Harder To Lasso Franchisors And Affiliated Businesses For The Alleged Sins Of Their Compatriots

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In 2015, the NLRB adopted a more relaxed standard for determining when an entity could be considered a joint employer and thus liable for alleged workplace wrongs along with a direct employer. Of course the result of the...more

Bradley Arant Boult Cummings LLP

McDonald’s Fries Franchise Workers’ Claims, Lands Whopper of a Ruling for Franchisors

In an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees...more

Alston & Bird

Vazquez v. Jan-Pro: A Clean Sweep for Employees?

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In the California judiciary, the present affects the past. Our Labor & Employment Group discusses why the Ninth Circuit held that the California Supreme Court’s Dynamex ruling applies retroactively....more

Fisher Phillips

January 2019: The Top 16 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Seyfarth Shaw LLP

Federal Court Serves Up Satisfying Seconds For California Franchisors: No Ostensible Agency Liability For Franchisees’ Alleged...

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Seyfarth Synopsis: A federal court in California recently held that a franchisor cannot be held liable for labor code claims where it did not exercise control directly, or through an actual agency relationship with the...more

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