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Vicarious Liability Joint Employers

Lathrop GPM

North Dakota Federal Court Denies Subway’s Motion to Dismiss Franchisee Employee’s Vicarious Liability Sex Trafficking Claims

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A federal court in North Dakota recently denied a motion to dismiss vicarious liability claims against the corporate entities constituting the Subway franchise system. C.S. v. Subway Worldwide, Inc., 2025 WL 472475 (D.N.D....more

Epstein Becker & Green

Employers in California: Don’t Forget That “Joint Employers” Are Not Vicariously Liable for Each Other’s Conduct

The Serrano/Ducksworth defense. If you know what I’m referring to, you don’t need to read any further.  But if you don’t, well, please read on....more

Lathrop GPM

The Franchise Memorandum - Issue # 265

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Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Fraud/Misrepresentation - Minnesota Federal Court Rules that Fraud and Misrepresentation...more

Lathrop GPM

The Franchise Memorandum - Issue 249

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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

Payne & Fears

Key California Employment Law Cases: March 2018

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This month’s two key California employment law cases are both significant decisions involving wage and hour laws. Alvarado v. DART Container Corp. of Cal., 4 Cal. 5th 542 (2018) - Summary: California formula for...more

Lewitt Hackman

FRANCHISOR 101: Liability as Certain as Death & Taxes

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Structuring a franchise to reduce risk of joint employment and vicarious liability means limiting a franchisor's control over franchisees. This is a challenge in a professional services franchise, where the brand is...more

Fox Rothschild LLP

Federal Court Concludes Franchisor Was NOT Joint Employer

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Another case has been decided adding to the back and forth in the legal world on the issues of a joint employer relationship of a franchisor and its franchisee and vicarious liability and agency between a franchisor and...more

Snell & Wilmer

Drafting Franchise Agreements After Patterson v. Domino’s : Avoiding the Minefield of Vicarious Liability and Joint Employment

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Lauded as one of the most important franchise cases in the recent past, Patterson v. Domino’s established a new standard for addressing vicarious liability issues in California. In reaching its decision that Domino’s was not...more

Clark Hill PLC

A Glimmer of Hope for Franchisors Fearing Joint Employer Liability

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In a recent article published by the Franchise Law Journal, authors Mary-Christine Sungaila and Martin M. Ellison survey the current status of joint employer liability in the franchise context and the pervasive influence of...more

Lewitt Hackman

FRANCHISOR 101: Wins, Losses & Lessons in Joint Employer Liability

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As joint employer liability continues to develop, plaintiffs seeking deep pockets continue to claim, with some success, that franchisors are joint employers, responsible for actions of their franchisees' employees. In April,...more

Lewitt Hackman

FRANCHISOR 101: 10 Ways Franchisors Can Reduce Vicarious Liability Risks

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The U.S. Department of Labor says McDonald's is liable for actions of franchisees. In the last three months a California federal court said McDonald's could be liable for a franchisee's alleged failure to pay overtime and...more

Dorsey & Whitney LLP

Strategies to Cope with New NLRB Joint Employer Ruling

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On August 27, 2015 the NLRB expanded its joint-employer test, which union supporters hope will apply to franchising. See January 2015 WaronFranchising.com blog entry for background. In a 3-2 decision on partisan lines, the...more

Lewitt Hackman

FRANCHISOR 101: Freshii Not Joint Employer

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The National Labor Relations Board ("NLRB") recently published a memo finding that Canadian fast-casual restaurant franchisor Freshii is not a joint employer of its franchisee's employees. The ruling concerns unfair labor...more

BakerHostetler

Court Sends Plaintiffs Back to the Locker Room Unhappy When It Denies Conditional Certification

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In January 2014, NFL Commissioner Roger Goodell raised eyebrows (and ire) when he announced that the league was considering eliminating the extra point after a touchdown. As Goodell put it, “the extra point is almost...more

Davis Wright Tremaine LLP

Twelve Tips for Franchisors to Reduce Joint Employer Risks Under Today's Legal Standards

Franchise agreement recitals declaring your franchisee to be an independent contractor, not an employee, are not dispositive! Until now, the spotlight has never shined so brightly on franchising and, specifically, on...more

Lewitt Hackman

California Supreme Court Overturns 2012 Domino's Decision

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On August 28, 2014, the California Supreme Court reversed a 2012 Court of Appeal decision in Patterson v. Domino's Pizza, LLC. The lower court held that franchise operating systems, like Domino's, deprive franchisees of the...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

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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