August 26th, 2015
Bracing for labor board decision, franchises spend recess courting Democrats
On a recent Friday afternoon, House minority whip Steny Hoyer (D-Md.) found himself touring the unremarkable accommodations of a Hilton Garden Inn. Hoyer was there to listen to the people who own franchises — along with McDonald’s and Burger Kings and other fast food outlets — who are bracing for a decision expected from the National Labor Relations Board this week that could make franchisors and general contractors liable for the labor law violations of their franchisees and subcontractors, and allow workers to bargain directly with businesses at the top of the chain. That likely would prompt principal contractors to exert more control, rather than take the risk of being sued for their subcontractors’ mistakes. Read more
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