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Court Watch

By Darryl A. Hart
June 30, 2009

Employer-Employee Relationship for Unemployment Insurance Purposes

In some franchise arrangements, the franchisor contracts with the ultimate customer, but its franchisees provide the contracted-for services to that end-customer. Janitorial services franchises typically follow this pattern. A great fear of franchisors whose programs follow this pattern is having their franchisees found to be employees for unemployment insurance and other employment-related purposes. A recent decision by an Oregon intermediate appellate court will give those franchisors pause.

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