Finally get that promotion? Get exclusive content, tips and tools to help you excel.
Shawn Premer shows how doing the right thing for employees leads to positive business results.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Battle over whether franchisor is joint employer begins before NLRB judge
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
Arguing before a National Labor Relations Board (NLRB) administrative law judge, McDonald’s, the world’s largest franchisor, and the NLRB’s general counsel took opposite sides March 10 over whether the company should be considered a “joint employer.” If the general counsel prevails and McDonald’s is held liable for any violations of the National Labor Relations Act that a franchisee commits, workers could unionize and bargain with headquarters.(Washington Post)
How McDonald’s Labor Trial Could Affect the Entire Fast Food Industry
If McDonald’s loses, giant fast food companies nationwide could be responsible for working conditions at all of their locations, including franchisees. The lawsuit is an outgrowth of protests by McDonald’s workers at franchisees in New York City, who called for higher wages and then allegedly were retaliated against by management, who threatened to fire the workers if protests continued.(Eater)
NLRB Charges Against McDonald’s Put Focus on HR
The NLRB charged in 2014 that McDonald’s acted with franchisees to take the alleged retaliatory discipline against employees—including reduction in hours, discharges and other coercive conduct—in response to the employees trying to improve their wages and working conditions during Fight for $15 protests. If franchisors reduced their interaction with franchisees because of the charges, HR consultants may have an opportunity to help provide tips to franchisees about wage and hour laws and labor laws. Franchisees typically don’t have their own HR professionals on staff or in-house or external legal support.(SHRM Online)
Fast Food Strikes in More than 160 Cities
Supported by the Service Employees International Union, the Fight for $15 strikes have been periodically held in at least 160 cities, calling for fast-food wages to be at least $15 an hour. McDonald’s has responded to the protests by noting that 90 percent of its restaurants are independently operated by franchisees who set their own wages.(Ms. Magazine)
Why Should McDonald’s Be a Joint Employer? NLRB Starts to Provide Answers
But McDonald’s tells franchisees how to staff restaurants, when to clean bathrooms and where partially completed orders should be placed on counters, among other directives, an NLRB attorney testified Thursday. Business consultants, scheduling systems and hiring software provided to franchisees show the company calls the shots, the NLRB attorney said. However, the company disputes the joint-employer designation and says it could undermine its franchising tradition. Witness testimony is scheduled March 14 on the joint employer questions. The case then moves from New York to Chicago and Los Angeles, where unfair labor practice complaints have been filed, before returning to New York.(Chicago Tribune)
Allen Smith, J.D., is the manager of workplace law content for SHRM. Follow him @SHRMlegaleditor.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Join SHRM's exclusive peer-to-peer social network
SHRM’s HR Vendor Directory contains over 3,200 companies