National Labor Relations Board: McDonald’s is NOT a Joint Employer

It’s official. 

A special panel within the National Labor Relations Board (NLRB) has ruled that McDonald’s is not a joint employer of its franchisees’ staff members, Restaurant Business reported. 

Thursday’s decision puts to rest a five-year battle that started in 2014 when individual McDonald’s restaurant employees filed complaints against different parties within the fast food giant to say their rights to engage in union activities were violated, the article stated. 

Years of back and forth arguments followed and have now been put to rest. 

“After five years of litigation, five years of unnecessary legal costs, and five years of uncertainty in the franchise sector, IFA is thrilled the NLRB came to this common-sense conclusion,” International Franchise Association (IFA) senior vice president of government relations and public affairs Matt Haller said, according to the article. “Franchise businesses are separate businesses; holding one business responsible for the actions of a different business that it does not and cannot control is utter nonsense. This decision can bring much-needed clarity to franchise businesses of all sizes.” 

The movement Fight for $15 denounced the decision.  

“This is an illegitimate decision from the Trump Administration’s compromised NLRB,” the group said in a statement, according to the article. “The Fight for $15 and a Union will forcefully appeal the decision. The settlement is not valid. McDonald’s is walking away with a get-out-of-jail-free card after illegally retaliating against low-paid workers who were fighting to be paid enough to feed their families.”

For now, at least, the NLRB’s ruling is surely welcome news for the fast food brand. Last month, former McDonald’s CEO Steve Easterbrook was fired for having a consensual relationship with an employee, which violates company policy. It was also reported in November that Chicago-based McDonald’s employees were suing McDonald’s Corp. for failure to minimize workplace violence.

Happy holidays?  

Read the full story in Restaurant Business.