Of all the advisories put out by lawyers since the NLRB’s bombshell “joint employer” warning last week, one stood out to the staff at Franchise Times. It was the email with the subject line that read: “Worry but don’t hyperventilate (yet).”
The email from Virginia-based firm PlaveKoch went on to offer several practical tips, including: Franchisors should be certain their franchisees use conspicuous signage to make clear that each franchisee is independently owned and operated. See more at FranchiseTimes
The National Labor Relations Board memo to McDonald’s was a warning that stemmed from labor complaints at some McDonald’s locations. “If the parties cannot reach settlement in these cases, complaints will issue and McDonald’s, USA, LLC will be named as a joint employer respondent,” the memo read, which would make it partly liable for employment practices by the owners of local franchises.
Also this week, Fitch Ratings said the NLRB move was unlikely to deter the U.S. restaurant industry’s continued shift toward franchising, and not likely to have a direct impact on the credit quality of franchisors – MarketWatch
In another case that speaks to the essence of the franchising model, the International Franchise Association asked a federal judge to immediately block portions of Seattle’s $15 minimum-wage law, which treats local franchises as large businesses instead of small businesses. Large businesses have three years to phase in the wage increase, while small businesses have seven years. – Read more at The Seattle Times