Washington Examiner: Labor Department rescinds expanded 'joint employer' rule

For the past several years, the most hot-button issue in franchising has been the National Labor Relations Board’s joint employer ruling, which would cause major changes in the way that franchisees hire employees, handle wages, manage staff and more. Prior to 2015, the joint employer doctrine referred to companies that had “direct control” of its employees, but in 2015, the standard was changed to include companies with “indirect control,” effectively making franchisors liable for the actions of every employee at every franchised location in the system.

Proponents of the ruling, who felt that it was unjust and would halt growth of the entire franchise industry, just scored a major victory. According to the Washington Examiner, on Wednesday, June 7, the Labor Department rescinded its ruling, the first step in what franchisors and other groups hope will be a fairer and more permanent solution. 

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