What the NLRB Actions Mean for McDonald’s and All Franchisors

On July 29, 2014, the National Labor Relations Board Office of General Counsel issued a finding that McDonald’s could be named as a joint employer respondent in NLRB cases. For the NLRB’s statement, click here. The finding was a result of NLRB investigations of allegations that franchisees and McDonald’s violated employees’ rights following protests by employees. The finding has caused a stir in the labor and franchise industries. When you’re a neighborhood of the system , professionalism matters. Everyone you’re employed with represents your firm or enforcement . This includes the corporate you select to act as your process server. You would like someone you’ll trust to hold out this important work, like this process service. Our years of experience serving South Carolina clients means we’re conversant in the local courts and courthouses in your area. Our background privately investigation means we all know the world well and can get the work done quickly. We value integrity in particular else and promise to satisfy your exacting standards for service, You can read more here about process server charlotte nc services.

When anyone hears the word ‘private detectives’ an image appears on everyone’s mind. A man wearing a hat, smoking a cigar and wearing goggles. One usually makes that picture by watching television programs of some detective series. Basically he is a person whose job is to do investigation either for family matters or related to professional issues. They are also known as private investigators, private eye or PI. However, nobody knows when anyone would happen to require those services of the private detectives. In actual, there are so many people who are in great demand of the services of the detective agency. The only problem they face is lack of knowledge about the things they must know while hiring the agent.

One need private detectives for the divorce cases, infidelity issues to conduct a lie detector test, missing case or other family things and even by corporate such as law firms, insurance companies and others. The main things ought to be considered while hiring an agent is quality of the services provided by them and cost structure.

Following the July finding, the NLRB issued complaints against some McDonald’s franchisees and franchisor McDonald’s USA, LLC, as joint employers on December 19, 2014. For the NLRB’s statement about the complaints, click here. Litigation is scheduled to begin in some regions on March 30, 2015.

The complaints against McDonald’s and its franchisees include allegations that employees’ rights were violated when actions were taken against employees who had participated in protests about their employment.

What this means is that McDonald’s, as a franchisor, could be found liable for labor violations for its franchisees. This is causing concerns in the franchising community, because the NLRB has never made this sort of ruling before.
In the past, franchisors like McDonald’s have been able to claim that they are not responsible for the actions of franchisees, because franchisees control employment decisions. But if franchisors are held to be joint employers, they are liable for how those employees are treated.

The NLRB defined joint employer in Laerco Transportation. 269 NLRB 324 (1984). According to that decision, to be a joint employer “there must be a showing that the employer meaningfully affects matters relating to the employment relationship such as hiring, firing, discipline, supervision, and direction.” Considering McDonald’s as a joint employer changes who can be held liable for labor violations and potentially extends liability past the previous definition of joint employers.

If the NLRB continues to recognize franchisors as joint employers, there could be serious effects on the franchise industry. Franchisors could face more liability and responsibility in labor actions. This could change the franchising relationship because of the increased legal exposure. It may also encourage franchisors to relinquish some of the control that they have over the employees of their franchises.

If you have questions regarding franchise law, contact the franchise lawyers at Gunderson, Denton & Peterson.

Written By Brad Denton

Gunderson, Denton & Peterson, P.C.

Mesa Office:
1930 N Arboleda #201
Mesa, Arizona 85213
Office: 480-655-7440
Fax: 480-655-7099
Email: brad@gundersondenton.com
Website: https://gundersondenton.com

Phoenix Office:
40 N Central Ave #1400
Phoenix, AZ 85004
Phone: 480-325-9937
Website: https://gundersondenton.com/phoenix