McDonald’s Wins Largest Adjudicated Case in the History of National Labor Relations Board & Sets Precedent for Franchise Business Model
McDonald’s Wins Largest Adjudicated Case in the History of National Labor Relations Board & Sets Precedent for Franchise Business Model Jan 4, 2020 In December, McDonald’s Corp. won a major battle in a multiyear legal battle with labor unions concerning alleged corporate labor violations at its many franchise restaurants. The ruling absolves the company of any direct responsibility as a joint employer when it comes to contracted labor, indicating that, without strong evidence that companies directly control the workers, they cannot be held liable for any labor violations that the franchise is involved in. According to the agency judge on record, this was the “largest case ever adjudicated in the history of the National Labor Relations Board.” The Case & Differing Opinions Labor unions started filing charges related to unfair labor practices against the company in 2012, claiming that it retaliated against employees for participating in union activities, including protests and strikes. Their argument in the case was that the national company shares control over workers in the franchise restaurants, and should therefore share in the liability. McDonald’s locations are reportedly 90 percent operated by franchisees. However, the company has reported that it cannot mandate that these franchise operators follow the company’s policies when it comes to issues such as sensitivity training or sexual harassment; that, instead, they are responsible for their own employees. The decision is being hailed as an important milestone for the franchise sector in general. Still, the union plaintiffs have indicated that they plan to appeal. At first, the current settlement amount was rejected by the Administrative Law Judge Esposito as inadequate. Specifically, Judge Esposito indicated that any proposal would have to mandate that McDonald’s ensured that its franchisees followed through on the terms of the settlement. However, upon McDonald’s appeal to the labor board, the board ruling overturned that decision and approved it, finding that Judge Esposito had held the proposed settlement to overly-strict standards. Had the case been further litigated, it likely would have affected the franchise business model in general by placing parent corporations on the hook for labor law violations committed by their franchisees. Will The Board Now Go Further? According to some reports, the board is expected to go further, and based a proposed rule on this decision in defining what a joint employer is. Under the standard established by the previous administration, a parent company can be considered a joint employer with a franchisee if they exercise indirect control over workers employed by the franchisee. The board is now expected to narrow that definition to only those parent companies that have significant, direct control over employees of the franchise. Contact Our Florida Business & Corporate Law Attorneys Today At HD Law Partners, our Tampa business and corporate attorneys possess the legal knowledge and experience necessary to prevent litigation when it comes to day to day operations for businesses, including labor relations. Contact us today to find out more. Resource: insurancejournal.com/news/national/2019/12/13/551147.htm nytimes.com/2019/12/12/business/economy/mcdonalds-labor-board-settlement.html cnn.com/2019/12/13/business/nlrb-mcdonalds-joint-employer/index.html Posted in Business Corporate | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us