NLRB and McDonald's Hearing begins in NYC

Today marks the beginning of the first round of the historic National Labor Relations Board hearings in New York.

McDonald’s, the defendant in a landmark case, is defending claims that the fast-food giant retaliated against employees who voiced their opinions about work conditions and participated in demonstrations urging for higher wages. This is the first time the NLRB will treat McDonald’s as a “joint employer" alongside its franchisees (a ruling made in July of last year by the NLRB’s general counsel), and this trial will serve as a benchmark for future franchise court decisions.

As a joint employer, McDonald’s corporate is held more responsible for the conditions at individual franchise locations throughout the country. The brand’s argument, however, is that it exerts little control over its franchisees, thus is unable to respond to protester demands. McDonald’s is also expected to contest the joint employer classification, asserting that franchisees are independent owner-operators who set their own policies and wages.

The International Franchise Association is vehemently opposed to the joint employer guideline because it increases a franchisor’s liability.

“The focus of these hearings is clearly off base,” the IFA said in a statement. “By contract and law, the franchisee -- not the franchisor -- is responsible for employment decisions, such as setting wages, hours and processing payroll.”

The hearings are a result of 19 complaints issued by the general counsel claiming that McDonald’s and some of its franchisees retaliated against workers who participated in protests calling for higher hourly wages and safer working conditions through different means like threats, reduced work hours and firings

Read more here.