Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: McDonald’s could be liable as joint employer in employee complaints against franchisees, (Jul 29, 2014)

By Pamela Wolf, J.D.

In a move that will undoubtedly spawn much concern in the franchise world, the NLRB’s General Counsel said that McDonald’s will be named as a joint employer respondent should parties find it impossible to resolve allegations that McDonald’s franchisees and the world-famous franchisor violated employees’ NLRA rights as a result of activities related to worker protests.

In ongoing protests in the United States and across the globe, seeking to win a minimum wage increase for fast-food workers, there has been a great deal of focus on McDonald's, the fast-food giant with the farthest global reach.

The Office of the General Counsel has investigated the protest-related charges and found merit in some, but not others. Accordingly, the GC has authorized complaints on the alleged NLRA violations. The complaints will be issued and McDonald’s, USA, LLC will be named as a joint employer respondent, the Board said in a July 29 statement.

Since November 2012, the General Counsel’s office has logged 181 cases involving the franchisor. Of those cases, 68 were found to have no merit, 43 had merit, and 64 cases are currently pending investigation. In the 43 cases in which the GC has authorized complaints, McDonald’s franchisees and/or McDonald’s, USA, LLC will be named as a respondent if parties are unable to reach settlement.

McDonald’s will contest the NLRB’s determination that it is a joint employer, according to media reports.

Companies: McDonald’s, USA, LLC

News: FranchisingDistribution