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Labor Law Violations 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

Seyfarth Shaw LLP

5 Key Trends For Workplace Class Action Litigation For 2019: Trend #3 Governmental Enforcement Litigation Trends In 2019

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Seyfarth Synopsis: The third key trend from our 16th Annual Workplace Class Action Litigation Report involves governmental enforcement litigation, including an overview of priorities and filings by the EEOC, the U.S....more

Robins Kaplan LLP

Financial Daily Dose 1.13.2020 | Top Story: Labor Dept. Issues Stricter Joint Employer Test in New Rules

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Sunday’s release of a long-awaited Labor Department final rule on joint employment spells trouble for workers hoping to “sue large companies for wrongdoing by contractors or franchisees.” The rule reverses Obama-era policies...more

Troutman Pepper Locke

Ninth Circuit Finds Franchisors Not Joint Employers of Employees of Franchisees Absent Direct Control Over Wages, Hours and...

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Q. As a franchisor, could I potentially be held liable for the wage and hour violations committed by franchisees of my organization against their employees?...more

Best Best & Krieger LLP

“Super-Sized” Win Delivered to California Franchisors

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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

Seyfarth Shaw LLP

Common Sense Prevails For California Franchisors: Ninth Circuit Focuses On Actual Control of the Worker in Joint Employment...

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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

Lewitt Hackman

Franchisee 101: Un-Merry Maids

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Employees of a Merry Maids home cleaning franchise brought a class action against the franchisee, the franchisor, its owner and affiliated entities claiming they were joint employers. A California federal district court...more

Lewitt Hackman

FRANCHISOR 101: Ostensible Agency Victory

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A California federal judge dealt a major blow to employees of a Bay Area McDonald's in their effort to hold the franchisor responsible for its franchisee's alleged failure to pay wages and provide meal and rest breaks. The...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

Lewitt Hackman

FRANCHISOR 101: Outdated FDDs and Unregistered Franchises

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The California Department of Business Oversight ("DBO") recently issued three Orders against franchisors for violating California's franchise laws....more

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