Draft walks back Obama-era standard that could have made franchisors liable
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The National Labor Relations Board on Friday is expected to publish its long-awaited new rule that will tighten the standard under which franchisees and franchisors are considered “joint employers.”
Under the draft rule, which will be published in the Federal Register and will be subject to a 60-day public comment period, a franchisor would be considered a joint employer of a franchisee’s employees only if it “possesses and exercises substantial, direct and immediate control over the essential terms and conditions of employment, and has done so in a manner that is not limited and routine. Indirect influence and contractual reservations of authority would no longer be sufficient to establish a joint-employer relationship.”
The rule rolls b...
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