News & Analysis as of

Employer Liability Issues Fast-Food Industry Franchisors

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

Littler

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

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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

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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

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

FordHarrison

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

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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

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

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

Polsinelli

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

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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

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

Littler

NY Attorney General Schneiderman Declares “War” on Non-Compete Agreements That He Perceives as Overbroad

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In an initiative that is virtually without precedent in New York, in the past two months (June 15, June 22 and August 4) Attorney General Schneiderman announced agreements with three separate companies in three different...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

Polsinelli

The Next Wave of Joint Employment Litigation

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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

Baker Donelson

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

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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

Littler

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

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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

Foley & Lardner LLP

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

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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

Davis Wright Tremaine LLP

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

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

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