Restaurant Business: New rule increases restaurant franchisors’ chances of paying for franchisees’ labor mistakes

Restaurant franchisors will face a greater risk of being sued or penalized for the employment lapses of their franchisees under a long-awaited redefinition of the licensee-licensor relationship by federal regulators, according to advocates for the foodservice industry.

Franchise Times: New Joint Employer Rule Draws Immediate Backlash as Franchisors Fear Liability

The National Labor Relations Board announced a final labor rule Thursday for determining joint employer status, broadening the definition and increasing the likelihood of franchisors being held liable with their franchisees for labor law violations.

Franchise Wire: IFA Urges Congress to Undo Revised Joint Employer Rule

Association Predicts Vast Harm to Franchising and Wants More NLRB Oversight In a statement released Thursday, the International Franchise Association called on Congress to reject the National Labor Relations Board’s expansion of the joint employer rule. The rules change makes franchisees and franchisors responsible for the same employees and for…