Feds Push on Franchise Model as NLRB Proceeds with McDonald’s Joint Employer Complaints

The National Labor Relations Board has followed through on its warning to McDonald’s, and has named McDonald’s a “joint employer” as it issued unfair labor practice complaints in 43 cases against McDonald’s franchisees and their franchisor, McDonald’s USA, LLC.

  • In response to the NLRB’s actions, McDonald’s said the ruling strikes “at the heart of the franchise system—a system that creates economic opportunity, jobs and income for thousands of business owners and their employees across the country. McDonald’s is disappointed with the board’s decision to overreach and move forward with these charges, and will contest the joint employer allegation as well as the unfair labor practice charges in the proper forums.” – Franchise Times.
  • The International Franchise Association joined in condemning the move. “This is the nightmare before Christmas for local franchise businesses, said xecutive Vice President of Government Relations & Public Policy Robert Cresanti. “The board has effectively legislated a change to the definition of who an employer is, which will impact hundreds of thousands of businesses. Unelected government bureaucrats, let alone one prosecutor, should not have such power.”
  • The IFA also launched a website for franchisees that provides key guidance on labor and workforce issues – the Labor and Workforce Hub

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