FRANCHISE GROUP WANTS LABOR BOARD TO EXPLAIN "JOINT EMPLOYER" RULING
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Source: associationsnow.com
BY ERNIE SMITH
The foundation of the franchise business model is starting to wobble under the weight of a ruling last summer by the National Labor Relations Board (NLRB), says the International Franchise Association. And IFA wants to know why.
In the July ruling, NLRB General Counsel Richard Griffin Jr. concluded that McDonald’s can be treated as a “joint employer” in a series of labor-practice complaints against its franchisees. In other words, McDonald’s can be held jointly responsible for its franchisees’ employment practices, even though it owns only 10 percent of the restaurants.
In an unprecedented move, you appear to have ignored decades of established law governing joint employment and franchising.
IFA President Steve Caldeira told The Wall Street Journal [subscription] that the ruling would “open a Pandora’s box of dangerously and needlessly costly and time-consuming labor complaints.” And IFA is particularly concerned that Griffin has not explained his legal reasoning.
Last week, Caldeira expressed those concerns [PDF] in a letter to Griffin, noting that since the decision, 61 charges have been filed against 27 other franchise-based companies or franchisees. Griffin’s decision “has opened the floodgates for the NLRB to investigate whether any franchisor should be named as a joint employer,” he wrote.
FULL story at link.
BY ERNIE SMITH / NOV 3, 2014
(Justin Sullivan/Getty Images)
Read more: http://associationsnow.com/2014/11/international-franchise-association-wants-labor-board-explain/
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