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A federal court in Virginia recently granted McDonald’s USA, LLC’s motion to dismiss a former franchise employee’s Title VII and Virginia Human Rights Act claims. Edmonds v. McDonald’s USA, LLC, 2025 WL 1066193 (W.D. Va. Apr....more
The Department of Labor (DOL) has issued a proposed rule to rescind a Trump administration joint-employer rule. The joint-employer rule attempted to treat companies, like McDonald’s and FedEx, as joint employers of franchise...more
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Fifth Circuit Reverses Trial Court’s Excusal of Area Representative’s Tardy Renewal Notice -...more
Part 2: New Employment-Related Court Decisions Impacting California’s Public and Private Entities - California and federal courts handed down a number of labor and employment-related decisions last year, impacting...more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more
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
Just before the holiday season, the National Labor Relations Board (“NLRB” or “Board”) provided employers with two big wins. First, on December 13, 2019, the NLRB announced its long awaited final rule to relax the Obama-era...more
Ninth Circuit Clarifies Joint Employer Classification - McDonald’s was not a joint employer of its franchisees’ workers, the U.S. Ninth Circuit Court of Appeals found recently in a decision that provides additional clarity...more
On October 1, 2019, the 9th Circuit Court of Appeals decided by majority opinion by Circuit Judge Susan Graber, with a partial dissent filed by Chief Circuit Judge Sidney Thomas, Salazar v. McDonald's Corp. No. 17- 15673 (9th...more
Seyfarth Synopsis: The Ninth Circuit’s recent decision in Salazar v. McDonald’s Corporation is welcome news for entities facing concerns about joint employment status under California law, and in particular, for franchisors....more
In a win for franchisors, the Ninth Circuit recently affirmed the district court’s summary judgment in favor of fast-food behemoth McDonald’s Corp., ruling that the franchisor is not a joint employer of its franchisees’...more
I admit I was among the scores of franchise lawyers whose blood pressure skyrocketed with passage of California’s AB 5. If a Franchise Agreement establishes an independent contractor relationship between franchisor and...more
The Ninth Circuit U.S. Court of Appeals ruled in a California lawsuit that one of the most recognized franchises, McDonald’s, does not exert sufficient direction or control over its franchisees’ employees to be considered a...more
In a case that should grab the attention of franchisors across the country, a panel of the US Court of Appeals for the Ninth Circuit has ruled that McDonald’s Corporation is not the joint employer of the employees of a...more
The Ninth Circuit ruled on October 1, 2019, that McDonald’s cannot be held liable for wage and hour violations allegedly committed by a franchisee in California because McDonald’s did not exert sufficient control over the...more
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
Companies doing business in California and elsewhere scored a victory yesterday in one of the fastest growing areas in employment law: joint employment claims. In a significant opinion, the U.S. Court of Appeals for the 9th...more
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
European antitrust authorities have delivered a stinging rebuke to Google in the form of a $5.1 billion penalty over its Android operating system practices. The sum displaces last year’s $2.7 billion fine, also against...more
The new General Counsel of the National Labor Relations Board (“Labor Board”), Peter Robb, continues to reshape the agency with his vision. Consistent with his January 2018 promise to consider “settlements of any kind that...more
On March 19, 2018, McDonald’s reached a proposed settlement with the National Labor Relations Board (the “Board”) to resolve the outstanding litigation concerning alleged labor law violations by McDonald’s franchisees. ...more
The DOJ is expanding its Wells Fargo sales probe into the bank’s wealth management division, a troubling move for an organization still trying to right the ship in its retail-banking unit where the sham-account scandal...more
On March 10, 2017, a federal court in California granted summary judgment in favor of McDonald’s and dismissed joint employment claims that had been brought against it by employees of one of its franchisees. In Salazar v....more
As government agencies steadily expand the concept of joint employment, franchisors increasingly find themselves in a difficult position. Since August 2015, when the NLRB ruled in Browning-Ferris that entities with the...more