site_logo
bannerFranchisor Stories

Franchises, Subcontractors Worried in Wake of Ruling

Companies are concerned about what the NLRB decision will mean and are working to battle it.

By Nick Powills1851 Franchise Publisher
SPONSOREDUpdated 1:13PM • 08/31/15

 a katz / Shutterstock.com

A National Labor Relations Board ruling that alters the definition of an employer could damage small businesses, including franchises and subcontractors, industry groups say. 
 

In the wake of the board's decision Thursday, franchises are scrambling to assess where they stand and how they will fight the ruling. The board said it will consider factors such as whether a company exercised control over employees "indirectly through an intermediary, or whether it has reserved the authority to do so" in determining whether companies are joint employers.

The move could open up franchises to increased liability and force them to the bargaining table. Union leaders said the ruling would help them organize employees of manufacturers and e-commerce companies as well as fast-food chains.
 
Click here to read the full story AP

MORE STORIES LIKE THIS

editorial

Franchise Deep Dive: The DRIPBaR Franchise Cost, Fees, Profit and Data

editorial

How Much Does It Cost To Open a Kumon Franchise?

editorial

Franchise Deep Dive: Get Up And Go Kayaking Franchise Costs, Fees, Profit and Data

editorialPlay

Franchise Deep Dive: Children's Lighthouse Franchise Costs, Fees, Profit and Data

NEXT ARTICLE