Pending National Labor Relations Board cases that will probably deem national corporations and their franchisees joint employers “could destroy a small business opportunity for more than 700,000 Americans,” according to Sen. Lamar Alexander (R-Tenn.), chair of the Senate Committee on Health, Education, Labor and Pensions.
Since 1984, the joint-employer standard has been whether a parent company exerts “a significant and direct degree of control” over franchise operations. The NLRB’s new standard would be based on whether the larger entity “has the potential” to control the terms and conditions of employment at a franchise. The distinction is important because the new standard would make it easier for litigious employees to go after the deep pockets of parent companies.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- After cutting staff, can we require remaining employees to work overtime?
- Did serial harasser fare better than the victim at DHS?
- Do you have a 'No lying' policy? It could be a legal lifesaver
- Third-Party harassment: The next frontier for New Jersey courts?