The Joint Employer Doctrine: How to Minimize Risk

February 10, 2016

For full-service restaurant franchisors, the time to act is now.

If you are a full-service restaurant franchisor, updating your Franchise Disclosure Document, Franchise Agreement, and other system documents is more important than ever. In recent decisions, the National Labor Relations Board and the Department of Labor have increasingly scrutinized franchise systems. These decisions threaten to hold franchisors—as the top level of the franchise system that establishes system standards and policies—responsible as an employer of its franchisees’ employees.

This is otherwise known as the joint employer doctrine, where employees may be considered to be employees of more than one employer—here, the…