How Changes in Joint Employer Liability Could Impact the Franchising Industry
Earlier this week, a series of hearings in the National Labor Relations Board case against McDonald’s Corp
began, ushering in what is likely to be a long process of ruling whether the company is to be considered a “joint employer”, and therefore, potentially liable for franchisees’ employment practices.
While the ruling is still up in the air, the case and its outcomes could have significant implications in the franchising space, and both franchisees and franchisors should carefully consider the range of possible ramifications before pursuing large-scale investments, transactions or other business activities. To help shed light on these potential economic ramifications, BDO’s Dr. James Woods and Chris Johnson recently wrote an article in Franchising World
that addresses the many uncertainties that those in the industry now face in the run-up to the ruling.