News & Analysis as of

Wage and Hour Franchises Appeals

Parker Poe Adams & Bernstein LLP

Fifth Circuit Declines Reconsideration of FLSA Salary Rule Decision

Last year in a rare victory for the Department of Labor, the Fifth Circuit Court of Appeals rejected a claim by a Dairy Queen franchisee that the Fair Labor Standards Act prohibits DOL from establishing any minimum salary for...more

Lathrop GPM

Ninth Circuit Affirms Decision that Franchisees Are Not Employees of Franchisor

Lathrop GPM on

The Ninth Circuit Court of Appeals recently affirmed a decision that a group of franchisees are not employees of their franchisor, even though the trial court failed to apply the correct test. Haitayan v. 7-Eleven, Inc., 2022...more

Lewitt Hackman

Franchisee 101: Jani-King Franchisees Wear Many Crowns

Lewitt Hackman on

Past and present franchisees of commercial cleaning service franchisor, Jani-King, brought claims for violation of Connecticut minimum wage and anti-kickback laws, and unjust enrichment. They claimed Jani-King misclassified...more

ArentFox Schiff

Lovin' It: Ninth Circuit Rules McDonald's is Not a Joint Employer with Franchisee in California

ArentFox Schiff on

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

ArentFox Schiff

Lovin' It: Ninth Circuit Rules McDonald's is Not a Joint Employer with Franchisee in California

ArentFox Schiff on

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

Littler

Highest Court in Canada Says Substance, not Form, will Determine Independent Contractor or Employee Status

Littler on

A recent Supreme Court of Canada (SCC) decision considered whether a franchisee who entered into a franchise agreement with a franchisor was an employee or an independent contractor. The fact-specific case, Modern Cleaning...more

Lewitt Hackman

Franchisor 101: Franchisor Can Be Liable as “Employer” for Missclassifying Workers

Lewitt Hackman on

The Ninth Circuit sent shockwaves through the franchise industry in ruling that last year’s California Supreme Court decision broadening who may bring wage misclassification claims (Dynamex v. Superior Court) applied...more

Polsinelli

D.C. Circuit Wrestles with Board’s Controversial Browning-Ferris Decision

Polsinelli on

On December 28, 2018, the U.S. D.C. Circuit Court of Appeals upheld the National Labor Relations Board’s (“NLRB” or “Board”) joint-employer test as articulated in Browning-Ferris Industries, 362 NLRB No. 186. ...more

Littler

D.C. Circuit Court of Appeals Partially Upholds Obama-Era Joint Employment Standard

Littler on

On December 28, 2018, a divided Court of Appeals for the District of Columbia Circuit upheld portions of an Obama-era standard for determining “joint employer” status under the National Labor Relations Act (NLRA), ultimately...more

Lewitt Hackman

FRANCHISOR 101: Run for the Border(line) Wage Claim

Lewitt Hackman on

The Ninth Circuit Court of Appeals upheld summary judgment in favor of Taco Bell on class claims that employees should be paid under California law for time spent on company premises eating employer-discounted meals during...more

Fisher Phillips

March Misclassification Madness: Misclassification Updates in the Gig Economy

Fisher Phillips on

Many of you likely have filled out your March Madness bracket, and are eagerly watching game after game hoping your bracket doesn’t bust. The gig misclassification game is experiencing a March Madness of its own. The debate...more

Sheppard Mullin Richter & Hampton LLP

NLRB Asks D.C. Circuit to Revive Review of Joint Employer Standard Under BFI; Hy-Brand Decision Vacated Following NLRB Ethics...

On March 1, 2018, the Deputy Associate General Counsel for the National Labor Relations Board (“NLRB”) asked the D.C. Circuit to revive its review of the Obama-era Browning-Ferris Industries, 362 NLRB No. 186 (2015) (“BFI”)...more

Lewitt Hackman

FRANCHISEE 101: McDonald's Shaking Damages for OT Policy

Lewitt Hackman on

In Los Angeles Superior Court, McDonald's claimed victory when 6,600 workers seeking $41 million in back pay and penalties came away with less than 2% of the amount sought in a claim that the fast-food giant cheated them out...more

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