1851

The National Labor Relations Board on Thursday altered the joint employer standard, dramatically changing the way franchises do business and opening them up to further liability.&nbsp;<div>The move potentially makes it easier for unions to organize employees of franchisees and subcontractors by forcing corporations to the bargaining table.&nbsp;&nbsp;The new standard also means corporations can be held legally liable for workers if franchisees or subcontractors break labor law. Industry groups are scrambling to respond to the decision and to fight it.&nbsp;</div><div>&nbsp;</div><div>The International Franchise Association criticized the decision that declared Browning-Ferris Industries to be a joint employer with Leadpoint, a staffing services company. IFA said the decision ignores nearly 50 years of bipartisan policy and decades of court and regulatory rulings and will ultimately harm the national economy.</div><div>&nbsp;</div>&#8220;The NLRB today satisfied the politically motivated requests of organized labor and manufactured a new joint employer standard that small businesses have long been bracing for," said&nbsp;IFA President and CEO Steve Caldeira. "In doing so, the board ignored decades of judicial precedent and bipartisan policy agreement dating back to the Johnson Administration to invent new labor law. The Browning-Ferris decision is proof that the NLRB may target parties to any business contract in pursuit of their ideological agenda of promoting unions above all else. The ruling jeopardizes small employers in numerous sectors and the future viability of the franchise model of doing business."&#8220;The board&#8217;s tortured analysis will undoubtedly be met with skepticism and will be rejected by local franchise owners, legislators and, ultimately, the courts,&#8221; Caldeira added. &#8220;IFA and its allies are asking Congress to intervene to halt these out-of-control, unelected Washington bureaucrats to preserve the established joint employer standard relied upon by America&#8217;s 780,000 franchise businesses and the 8.5 million jobs they directly create.&#8221;According to long established practice and law, local franchise owners control their own hiring practices, working conditions, wages, and hours of operations and file their own taxes. None of these decisions are controlled by the brand company, IFA said. Each local franchise business owner operates a separate company independent of the brand company. It is clear that franchise employees are completely independent of the brand company, IFA argued.&nbsp;Under the new ruling, the NLRB would consider a whole multitude of factors &#8211; completely unrelated to employees&#8217; condition of employment &#8211; as indicative of joint employment. Prior to today, to be deemed a joint employer, two or more companies must have exercised direct operational and supervisory control over an employee. Under this new interpretation, the NLRB is expanding that and applying a broader &#8220;economic realities&#8221; test to include &#8220;indirect control&#8221; or even &#8220;potential, unexercised control," IFA pointed out.&nbsp;These changes to the joint employer standard could impose new collective bargaining obligations and allow unions the ability to strike or picket a large entity compared to the location where there is a dispute. The new standard would also increase the likelihood of union &#8220;campaigns&#8221; against national businesses, while forcing small businesses to become engaged in protracted, unnecessary and costly legal battles, IFA said.&nbsp;

1851 Franchise

The board's decision opens franchises up to increased bargaining and legal liability. 

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

NLRB Upends Joint Employer Standard for Franchise Business Owners       

nlrb-upends-joint-employer-standard-for-franchise-business-owners

Atomic Wings

Milwaukee Business Journal: Atomic Wings Plans To Bring the Heat to Southeast Wisconsin

milwaukee-business-journal-atomic-wings-plans-to-bring-the-heat-to-southeast-wisconsin

Melting Pot

Melting Pot Showcases Fondue Fun and Franchise Opportunity on FOX & Friends

melting-pot-showcases-fondue-fun-and-franchise-opportunity-on-fox-friends

Right at Home

Leading In-Home Care Franchise Looks to Expand in Fort Wayne, Indiana

leading-in-home-care-franchise-looks-to-expand-in-fort-wayne-indiana

Why Melting Pot Is a Next-Level Upgrade for Existing Restaurant Operators

why-melting-pot-is-a-next-level-upgrade-for-existing-restaurant-operators

Sola Salons

Sola Salons: A Prime Multi-Unit Opportunity for Driven Entrepreneurs

sola-salons-a-prime-multi-unit-opportunity-for-driven-entrepreneurs

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

PopUp Bagels Launches National Franchise Expansion with New CEO Tory Bartlett Leading the Charge

popup-bagels-launches-national-franchise-expansion-with-new-ceo-tory-bartlett-leading-the-charge

CPK Franchising - California Pizza Kitchen - 1851 Franchise

California Pizza Kitchen Is Now Franchising in the U.S.

cpk-franchising-california-pizza-kitchen-united-states

California Voters Reject $18 Minimum Wage Increase

california-voters-reject-18-minimum-wage-increase

McDonald’s Commits $100 Million to Aid Franchisees and Rebuild Trust After E. Coli Outbreak

mcdonalds-commits-100-million-to-aid-franchisees-and-rebuild-trust-after-e-coli-outbreak

Blackstone Acquires Majority Stake in Jersey Mike's, Signaling Ambitious Growth Plans - 1851

Blackstone Acquires Majority Stake in Jersey Mike's, Signaling Ambitious Growth Plans

blackstone-acquires-majority-stake-in-jersey-mikes-signaling-ambitious-growth-plans

The Crucial Role of Social Media in Franchise Success

the-crucial-role-of-social-media-in-franchising

Paris Baguette Franchise Deep Dive - 1851 Franchise

Franchise Deep Dive: Paris Baguette’s Franchise Costs, Fees, Profit and Data

franchise-deep-dive-paris-baguettes-franchise-costs-fees-profit-and-data

The Importance of Good Customer Service in Franchising

the-importance-of-customer-service-in-franchising

Austin Titus Shares Vision for Cannoli Kitchen’s Growth in Competitive Pizza Franchise Market

austin-titus-shares-vision-for-cannoli-kitchens-growth-in-competitive-pizza-franchise-market

U.S. Navy Reservist Brings Pigtails & Crewcuts to Clarksville, Filling a Community Need

us-navy-reservist-brings-pigtails-crewcuts-to-clarksville-filling-a-community-need

NLRB Upends Joint Employer Standard for Franchise Business Owners

MORE STORIES LIKE THIS