Legal Alert - General Counsel of the NLRB Opens the Door for Franchisors to be Liable for the Actions of Their Franchisees


by Ashley T. Kasarjian, Michael J. Coccaro and Gerard Morales

In a directive that has rocked the franchise world, the National Labor Relations Board (NLRB or the Board) Office of the General Counsel determined that McDonald’s USA, LLC, as the franchisor, could potentially be held liable for the actions of its franchisees under the “joint employer” theory. The General Counsel’s decision has authorized numerous unfair labor practice complaints based on alleged violations of the National Labor Relations Act (NLRA) to potentially proceed against both the franchisor and franchisee entities.

[Read the full alert.]