Ruling Has Potential To Harm Small Businesses
After investigating claims that some McDonald’s franchisees broke labor laws by punishing employees who took part in labor actions, the general counsel of the National Labor Relations Board held that if a franchise holder commits such a violation, the parent corporation can be held jointly liable. The ruling, released on Tuesday, only applies to McDonald’s for the time being. While McDonald’s has vowed to fight the decision, if it is upheld, it could set a precedent for others in the franchise industry.
Additional Reading.The Wall Street Journal and the Marketplace both report on the ruling, along with the underlying labor disputes.
Read NFIB's helpful infographic on the advantages and disadvantages of franschising
This news article is intended to keep small business owners apprised of current events that may affect them. It does not necessarily reflect NFIB’s policy position on such issues.