Executive Summary: On Thursday, December 12, 2019, the National Labor Relations Board (NLRB or the Board) ordered an administrative law judge to approve a settlement previously reached between McDonald’s, its franchisees, and workers. Although the settlement terms were not disclosed, McDonald’s maintains in the settlement that it is not, and never was, a joint employer of its franchisees’ workers. By ordering approval of the settlement, the NLRB effectively agreed with McDonald’s that it is not a joint employer and therefore should not be held liable for its franchisees’ labor practices––a major win for McDonald’s, as well as companies throughout the nation who use the franchising model (and their franchisees).
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