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Employer Liability Issues Franchises

Fox Rothschild LLP

Texas Supreme Court Reverses Liability Finding Against Franchisor

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A recent Texas Supreme Court decision fully overturned a jury’s finding that a franchisor was liable for the criminal actions of a franchisee’s employee. This decision underscores the importance of a franchisor having clearly...more

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

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

Lathrop GPM

Ohio Federal Court Dismisses Perpetrator Liability Sex Trafficking Claims Against Hotel Defendants, Allows Vicarious Liability...

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A federal court in Ohio recently granted, in part, defendants’ motion to dismiss various TVPRA claims and denied their motion to transfer in a suit concerning alleged sex trafficking at two Red Roof Inn locations in Virginia...more

Troutman Pepper Locke

Can Nurses Lawfully Be Classified as Independent Contractors? September 2024 IC Legal ‎News Update

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One of the most important legal developments last month is a new lawsuit filed by registered nurses against a leading health care system alleging that they have been misclassified as independent contractors instead of...more

Morgan, Brown & Joy, LLP

Supreme Judicial Court Rules That Typical Franchise Operators Are Independent Contractors, Not Employees

On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) held that 7-Eleven franchisees operating in a “typical” franchisor-franchisee relationship were independent contractors and not “employees” of 7-Eleven,...more

Faegre Drinker Biddle & Reath LLP

NLRB Withdraws Appeal of Joint Employer Rule Decision

Last week, the National Labor Relations Board (NLRB) withdrew its bid to save its new joint employer rule, which would have treated some entities as joint employers with their contractors or franchises, even when those...more

Parker Poe Adams & Bernstein LLP

NLRB Waves White Flag on Expansion of Joint Employer Definition

Last week, the National Labor Relations Board withdrew its appeal of a federal court decision that blocked its 2023 rule that significantly expanded the definition of joint employment under federal labor law....more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Kilpatrick

3 Key Takeaways | Is Franchising Doomed (2024 Version)?

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On June 12, Kilpatrick’s Marc Lieberstein, Franchise and Licensing Partner, and Chris Caiaccio, Labor and Employment Counsel, spoke for Celesq, a leading provider of legal education, on the topic of whether franchising was...more

Polsinelli

What is the Impact of the FTC’s Final Non-Compete Rule on Franchisors and Franchisees?

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As explained in Polsinelli’s prior alert of April 24, 2024, the FTC announced its final rule on non-compete covenants (the “Rule”) on April 23, 2024. Critically, the Rule does not prohibit non-compete agreements between...more

Akerman LLP

New FTC Rule Spares Non-Compete Clauses That Bind Franchisees, But Bans Most “Worker” Non-Compete Clauses

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On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a Non-Compete Clause Rule that would ban most non-compete clauses in agreements between businesses and their “workers.” The final rule will take effect 120...more

UB Greensfelder LLP

FTC Issues Rule Prohibiting Non-Competes

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On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more

Seyfarth Shaw LLP

Texas District Court Invalidates the NLRB’s Joint Employer Rule

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Last Friday, March 8, 2024, the United States District Court for the Eastern District of Texas struck down the National Labor Relations Board’s (“NLRB”) 2023 Joint Employer rule (“2023 Rule”) finding that it was both...more

Hinckley Allen

Federal Court Invalidates NLRB’s Joint Employer Standard

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Update: As we indicate below, the NLRB’s final rule regarding the standard to determine joint-employer status under the NLRA was met with a challenge in the court system, and on March 8, 2024, just days before the applicable...more

Ballard Spahr LLP

Texas Court Strikes Down NLRB Joint Employer Rule

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On March 8, 2024, a Texas federal district court vacated the National Labor Relations Board (“NLRB” or “the Board”) 2023 joint employer rule (“2023 Rule), and restored the 2020 joint employer rule (“2020 Rule”)....more

Polsinelli

Federal Court Strikes Down NLRB’s Expansive “Joint Employment” Standard

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On the eve of its going into effect, a federal court struck down the expansive joint-employment standard announced by the National Labor Relations Board (“NLRB” or “Board”) last fall. At issue is who may be considered a...more

CDF Labor Law LLP

NLRB’s New Joint Employment Rules Struck Down By Federal District Court

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In October 2023, the National Labor Relations Board (NLRB) issued its new Final Rule addressing and expanding the proper standard for determining joint employment status under the National Labor Relations Act (NLRA). This was...more

Parker Poe Adams & Bernstein LLP

Federal Court Delays Effective Date of NLRB Joint Employer Rule

Last week, a Texas federal court extended a temporary ban on implementation of the National Labor Relations Board’s joint employer rule until March 11. The rule was originally effective in December, but the NLRB delayed the...more

Whiteford

Employment Law Update: NLRB News You Should Know - THE JOINT EMPLOYER RULE ON HOLD, AGAIN

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In October 2023, the NLRB finalized its Joint Employer Rule (the Rule), which was slated to become effective February 26, 2024. The Rule would expand when franchisors, staffing company users and other placement firms with...more

Miller Nash LLP

New NLRB Rule Significantly Broadens Joint Employer Definition

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In yet another significant reversal, the National Labor Relations Board (NLRB) enacted a critical change in how it interprets the National Labor Relations Act (NLRA). On October 26, 2023, the NLRB released its final rule...more

Holland & Knight LLP

NLRB Adopts, Then Extends Deadline for New Joint Employer Rule

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The National Labor Relations Board (NLRB) on Oct. 26, 2023, issued a new rule that significantly expands who qualifies as a joint employer under the National Labor Relations Act. Under the new rule, which rescinds the prior...more

Gray Reed

Double Trouble: NLRB Rule Change Increases Joint Employer Risk

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Effective December 26, 2023, the National Labor Relations Board (NLRB) is changing one of its rules to make it easier to characterize two businesses as joint employers and potentially making one business unexpectedly liable...more

Hogan Lovells

U.S. NLRB makes it more likely to deem companies as joint-employers

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The National Labor Relations Board (NLRB or the Board) issued its final rule on the latest standard for joint-employer status on October 26, 2023, with an effective date of December 26, 2023. Joint-employer status is crucial...more

Akerman LLP - HR Defense

What’s Mine is Yours and What’s Yours is Mine: The NLRB’s New Joint Employer Rule Vastly Expands Joint Employer Status

Do you know who your employees are? It seems pretty simple – those individuals on your payroll whose employment you control and supervise, right? Not so fast, says the National Labor Relations Board (NLRB or Board)....more

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