The Wall Street Journal recently reported that, according to the International Franchise Association, there has been an increase in the number of complaints filed against franchise systems since the surprising opinion the National Labor Relation Office of General Counsel issued in July that McDonald's could be treated as a "joint employer" of employees working at its franchised locations.
According to the IFA, "in the three months since the NLRB disclosed the complaints against McDonald's, 61 new charges have been filed against 27 other franchise brands, with a number of those raising the joint-employer claim." IFA President, Steve Caldeira, speaking on the association's behalf stated that the complaints threaten the franchise industry and destroy the contractual relationship established between franchisors and franchisees. The report of additional complaints is not surprising but it will be interesting to see how the NLRB addresses the charges which raise the joint-employer claim. We will continue to keep you posted on this important issue.
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