Legal Alert - Joint Employers Under NLRB Law
by Gerard Morales
Over the last few weeks, there has been a great deal of discussion in the legal media regarding the National Labor Relations Board (NLRB or Board) General Counsel’s (GC) argument to the Board, that McDonald’s USA, LLC, as franchisor, is a “joint employer” of its franchisees’ employees throughout the country. If the GC’s argument in this case, which is currently pending before the Board, is successful, franchisors, as joint employers, would be exposed to liability for the unfair labor practices and collective bargaining obligations of their franchisees. This result would have a very significant impact on the franchise industry. Indeed, the International Franchise Association (IFA) considers the joint employer issue its top priority for the coming months.