News & Analysis as of

Employer Liability Issues Fast-Food Industry Franchisee

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

New York State Senate Bill Would Make Fast-Food Franchisors Jointly and Severally Liable for Certain Labor Law Violations

On April 8, 2025, the New York State Legislature took up Senate Bill S7289, which, if enacted, would amend the New York Labor Law (NYLL) by adding a new article 35-A, otherwise known as the “New York State Fast Food...more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

Quarles & Brady LLP on

In Deslandes v. McDonald’s USA LLC, issued August 25, 2023, the U.S. Court of Appeals for the Seventh Circuit overturned the dismissal of antitrust claims that challenged no-poach clauses in franchise agreements....more

Vinson & Elkins LLP

Seventh Circuit Revives Former McDonald’s Workers’ No-Poach Suit

Vinson & Elkins LLP on

An important federal appeals court has clarified a key principle of antitrust law in a way that potentially makes it more difficult for an employer to win a motion to dismiss, and thereby avoid expensive discovery, with...more

Littler

Hot Take(out): California Fast Food Franchises Could Face Increased Liability

Littler on

It’s been a busy spring at the California state capitol.  Among the few thousand bills being considered by California’s legislature this year, AB 1228 stands out.  The bill would essentially create joint liability for...more

Littler

California Legislature Serves Up Bill Proposing Joint Employer Liability For Fast Food Franchisors

Littler on

With one day left to spare before the deadline to introduce new bills, on February 16, 2023, California Assemblymember Chris Holden (D-41) introduced Assembly Bill 1228, the “Fast Food Franchisor Responsibility Act.”  This...more

Bilzin Sumberg

Eleventh Circuit Revives Putative Class Action Against Burger King for Violation of Federal Antitrust Laws Based on No-Poaching...

Bilzin Sumberg on

Arrington v. Burger King Worldwide, Inc., No. 20-13561 (11th Cir. Aug. 31, 2022) – In October 2018, a former line cook of a Burger King franchise restaurant in Illinois, filed a class action complaint in the District Court...more

Latham & Watkins LLP

California Adopts the FAST Recovery Act: What Fast-Food Chains Need to Know

Latham & Watkins LLP on

The Act has the potential to significantly increase wages for restaurant employees and to impose work scheduling limitations on restaurant companies. Key Points: ..Restaurant companies that are part of a chain with...more

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

New California Bill Aims to Supersize Fast-Food Workers’ Rights

On January 31, 2022, the California State Assembly passed Assembly Bill (AB) No. 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), which would potentially provide increased rights to the...more

Ervin Cohen & Jessup LLP

FAST Act (AB-257) Narrowly Defeated

On June 3, 2021, AB-257, the Fast Food Accountability and Standards Recovery Act (the “FAST Act”) was defeated in the California Assembly, coming up three votes short of the 41 votes needed. The FAST Act would have...more

Skadden, Arps, Slate, Meagher & Flom LLP

Spotlight on No-Poach Agreements Continues, Expands to New Industries

In recent weeks, Washington State Attorney General Bob Ferguson has continued to expand his efforts to eradicate the use of no-poach agreements by employers. The targets of his investigation are companies that have included...more

Fisher Phillips

The Evolving Definition of Joint Employers

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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

Baker Donelson

Class Action Attempt to Void Jimmy John's Non-Competes Goes Stale

Baker Donelson on

Sandwich chain Jimmy John's has been in the news lately because of non-compete agreements that employees of its franchisees sign. This is not necessarily good news for Jimmy John's, but it does underscore some interesting...more

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