Actions May Speak Louder than Words: Can Franchise Agreements Protect Franchisors from Liability as Joint Employers?

The National Labor Relations Board (NLRB) has created a buzz within the franchise community by announcing that McDonald’s may be responsible as a “joint employer” for alleged unfair labor practices of some of its franchisees. Employees of franchisees have filed more than 180 unfair labor practice charges against both the franchisees and McDonald’s. The NLRB’s general counsel has said that 43 of these cases have merit. He has authorized the filing of complaints naming McDonald’s as a respondent in those cases unless settlements are reached.