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NLRB and the Joint Employer: Is Franchising On the Ropes?

By Paul F. Millus
May 01, 2016

Lately, there is never a dull moment at the National Labor Relations Board (NLRB). Recent NLRB decisions have rewritten the labor law map in a variety of ways, but nowhere more significantly than in the areas of franchising and outsourcing. With the decision in Browning-Ferris Industries of California, which dealt with a temporary staffing agency (Browning-Ferris Industries of California, Inc. d/b/a BFI Newby Island Recyclery and FRR-II LLC d/b/a Leadpoint Business Services and Sanitary Truck Drivers and Helpers Local 350, International Brotherhood of Teamsters, Case No. 32-RC-109684) and, more recently, in a decision by the NLRB's general counsel involving McDonald's USA, LLC (McDonald's USA and Fast Food Workers Committee and Service Employees International Union, CTW, CLC, Case No. 02-CA-093893), the definition of a “joint employer” has grown exponentially broader. This portends a vast expansion of employer liability on a joint employer theory in almost every area of law imaginable from tort to employment discrimination litigation.

McDonald's USA

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