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Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Lathrop GPM

Ninth Circuit Affirms Decision that Franchisees Are Not Employees of Franchisor

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The Ninth Circuit Court of Appeals recently affirmed a decision that a group of franchisees are not employees of their franchisor, even though the trial court failed to apply the correct test. Haitayan v. 7-Eleven, Inc., 2022...more

Troutman Pepper

Recent No-Poach Developments: Hold the Pickle, Hold the Dismissal — Eleventh Circuit Overturns Burger King's District Court...

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In early September, the Eleventh Circuit reversed the district court’s judgment for defendants Burger King Corporation, Burger King Worldwide, Inc., and their ultimate parent Restaurant Brands International, Inc....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

Polsinelli

Labor Department Rescinds Pro-Franchise Joint-Employment Rule

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On July 29, 2021, the U.S. Department of Labor announced it is rescinding a final rule issued just last year (2020 Final Rule) that sought to clarify the standard for finding two separate entities to be “joint employers”...more

Polsinelli

Department of Labor Clarifies that Franchising Does Not Make Joint-Employer Status More Likely under FLSA

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On January 12, 2020, the U.S. Department of Labor announced a final rule that updates its regulations interpreting when multiple entities can be held liable as “joint employers” for wage-and-hour violations under the Fair...more

Seyfarth Shaw LLP

DOL Announces Rule Clarifying Joint Employment Under FLSA

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Seyfarth Synopsis: On January 12, 2020, the U.S. Department of Labor announced its Final Rule clarifying the issue of joint employment under the Fair Labor Standards Act. The Final Rule adopts a four-factor balancing test and...more

Bradley Arant Boult Cummings LLP

McDonald’s Fries Franchise Workers’ Claims, Lands Whopper of a Ruling for Franchisors

In an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees...more

Faegre Drinker Biddle & Reath LLP

Franchisor had no Duty to Protect Franchisee’s Employee From Sexual Harassment, Court Finds

Franchisors should review their franchise agreements and practices to ensure they do not retain or exercise control over the particular aspects of their franchisees’ employment practices in light of a recent decision...more

Skadden, Arps, Slate, Meagher & Flom LLP

No-Poach Update: DOJ Seeks to Rein In Franchise Suits

Evolving antitrust treatment of so-called “no-poach” agreements continues to offer important guidance for company counsel and human resources professionals. Over the past two years, the Department of Justice (DOJ) has...more

Troutman Pepper

Federal Court Reinforces That Franchisors Should Control Advertising to Ensure Uniformity

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An Illinois federal judge recently found that a franchisor has the absolute right to control its franchisees’ advertising of the products and services offered under a franchise. Lokhandwala v. KFC Corp., No. 17-cv-6394 (N.D....more

Fox Rothschild LLP

Federal Court Concludes Franchisor Was NOT Joint Employer

Fox Rothschild LLP on

Another case has been decided adding to the back and forth in the legal world on the issues of a joint employer relationship of a franchisor and its franchisee and vicarious liability and agency between a franchisor and...more

Blake, Cassels & Graydon LLP

Now in Effect: British Columbia’s Franchises Act

On February 1, 2017, British Columbia’s Franchises Act (B.C. Act) and Franchises Regulation (Regulation) came into force. Although the B.C. Act follows other provincial franchise legislation closely, including with respect to...more

Ballard Spahr LLP

Subway, DOL Partner to Improve FLSA Compliance

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Last week, the Subway restaurant chain entered into a landmark partnership with the U.S. Department of Labor (DOL) aimed at improving Fair Labor Standards Act (FLSA) compliance among the chain's 27,000 franchisees. The DOL...more

Goulston & Storrs PC

NLRB Issues Significant Ruling on “Joint Employer” Issue

Goulston & Storrs PC on

In December 2014, we reported that the General Counsel of the National Labor Relations Board (NLRB) had issued 13 complaints naming McDonald's as a “joint employer” of the employees at its franchisees. The complaints alleged...more

Foley & Lardner LLP

Joint Employer Status for Franchisors Sees Some Reprieve, but not Enough yet for Celebration

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We noted last year that, at the behest of its General Counsel Richard Griffin, the National Labor Relations Board was looking to recast the joint employer test under the National Labor Relations Act (NLRA) within the...more

McGuireWoods LLP

New NLRB Advice Memorandum Offers Glimmer of Hope to Franchisors

McGuireWoods LLP on

On April 28, 2015, the National Labor Relations Board (NLRB) issued an advice memorandum addressing when franchisors can be considered “joint employers” with their franchisees for purposes of the National Labor Relations Act...more

Lewitt Hackman

FRANCHISOR 101: Accidental Franchises in Industries Not Typically Associated With Franchising

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Almost everyone recognizes the nation's most prominent franchises: McDonald's, Domino's, Hilton or 7-Eleven, to name a few. And business people are becoming aware that arrangements that look like franchises, but are...more

Lewitt Hackman

FRANCHISOR 101: Avoid Liability for Acts and Incidents at Franchisees' Locations

Lewitt Hackman on

There has been a lot of news lately about risks of franchisors being liable for acts and incidents at franchised locations. The National Labor Relations Board's general counsel recently announced he intends to claim...more

Davis Wright Tremaine LLP

Twelve Tips for Franchisors to Reduce Joint Employer Risks Under Today's Legal Standards

Franchise agreement recitals declaring your franchisee to be an independent contractor, not an employee, are not dispositive! Until now, the spotlight has never shined so brightly on franchising and, specifically, on...more

Benesch

NLRB General Counsel Seeks To Hold Franchisors Liable For Acts Of Franchisees

Benesch on

In a sweeping departure from existing law, National Labor Relations Board (“Board”) General Counsel, Richard F. Griffin, announced yesterday that he will name McDonald’s USA LLC as a joint employer in dozens of unfair labor...more

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