US labor board eases companies' liability for franchisee labor-law violations
The rule by the National Labor Relations Board requires that companies have direct control over the working conditions of franchise and contract workers in order to be considered their “joint employers”
A US labor board on Tuesday finalized a rule that will make it more difficult to hold companies liable for unlawful labor practices by franchisees and contractors, reversing a more worker-friendly Obama-era standard criticized by business groups.
The rule by the National Labor Relations Board, which was first proposed in September 2018, requires that companies have direct control over the working conditions of franchise and contract workers in order to be considered their "joint employers."
The issue is important for franchisers like McDonald's or Burger King and the many companies that utilize staffing agencies, because joint employers can be made to bargain with unions and found liable for violations of the US law governing union organizing.
Keep updated, follow The Business Standard's Google news channel
