Franchise Parents, Staffing Firms Ruled Joint Employers Under Labor Law

By | August 28, 2015

  • August 28, 2015 at 1:27 pm
    Chuck says:
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    Just another desperate move by Democrats and unions [is there any difference between them] to hang on as they decline in relevancy. If this goes to the SCOTUS it will die.

  • August 28, 2015 at 1:43 pm
    FFA says:
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    So these companies figure out how to keep costs under Controll and her come the Govt just screwing them. Pretty soon, due to govt influence there will no employers left.

    • August 28, 2015 at 3:18 pm
      Agent says:
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      FFA, I have seen a lot of trouble over the years with “Temp Agencies” furnishing employees to companies. They get into trouble with WC carriers on audits, run two sets of payroll books to avoid paying premium. Several have been prosecuted. I had a customer consider using one and I told him – Do not do this, you are better off hiring your own employees and doing WC direct. A few months later, the staffing firm was prosecuted and put out of business. He was glad he followed my advice.

      • August 31, 2015 at 11:46 am
        FFA says:
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        Was it a PEO or a Staffing agency?

        • August 31, 2015 at 5:03 pm
          Agent says:
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          Employees leased to the company which made them technically the Staffing Agency employees, supposedly with WC and other benefits. The company would pay an hourly fee for each employee with some profit built in per hour. A pretty expensive proposition for the company that did it. It was supposed to eliminate some paperwork and the benefit expense, but when you do it with fraud in mind, that is when it falls apart. Then, you have to re-establish WC with lapse of coverage, lost modifiers and higher cost.

          • September 1, 2015 at 3:49 pm
            Agent says:
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            FFA, I was sorry to see your law enforcement officer get gunned down on the north side of Chicago. Open season on law enforcement this year. We had a deputy get gunned down here while he was filling his car with gas. The guy emptied a glock on him starting with a head shot and working his way down. 15 shots.

            His momma said it couldn’t have been him because they were shopping. Funny thing about recovering the gun and his truck, confirming it was the weapon and his fingerprints all over it. My guess is he will get the needle in about 10 years after the appeals are exhausted. What will Illinois do to the three perps that shot your officer?

    • August 31, 2015 at 11:52 am
      Agent says:
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      FFA, we see the stories all the time about unions and the harm they are causing employers with their high wage demands, benefit packages causing companies to move out of state. Democrat dominated legislatures like in Illinois and other northern states have been bought by the unions and that is a big problem. Boeing wanted to build a plant in SC for a new model airliner and one might have thought the world was coming to an end with the stink raised through NLRB, but it didn’t work and SC has their plant with many new jobs and they aren’t union jobs either.

    • August 31, 2015 at 11:36 pm
      UW says:
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      You mean keep costs under control by illegally claiming they aren’t employers, even though they set the rules, take profit from the work, hire and fire people. If you cannot afford to pay your employees, and have to dodge responsibility as these groups do, good riddance, you shouldn’t exist as a company.

  • August 28, 2015 at 2:15 pm
    MRG says:
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    The Title of this article is completely inaccurate. Did Mr. Snyder even read the opinion? It made no mention of applicability to franchising other than in footnote 120 where it says that they were not deciding the issue in other contexts, including franchisor-franchisee. The dissent discusses the potential impact to franchising at page 45.

  • August 28, 2015 at 2:19 pm
    Barry Rabkin says:
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    The US Supreme Court will over-rule / nullify this ruling. Each franchisee is its own business.

    • August 31, 2015 at 11:38 pm
      UW says:
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      No they aren’t. If they were the main company would not be able to set standards for who they hire, require them to follow certain policies, control what they sell, control their expansion, limit their ability to sell their company, etc.

  • August 28, 2015 at 2:42 pm
    Hmmmm says:
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    Hope this doesn’t sound stupid, but what about all of the PEO’s out there? Does this decision put a huge lock on their function? It is a dual employer relationship that the article talks about?

  • August 28, 2015 at 2:46 pm
    Jack Kanauph says:
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    It would be great if some lawyer could figure a way to apply this ruling to the union too so they could become a co-employer.

  • August 28, 2015 at 2:54 pm
    UW Supreme says:
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    Not a chance in hell the Supreme Court won’t overrule this egregious overreach.

    • August 28, 2015 at 3:29 pm
      Transformer says:
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      I never say never where the SCOTUS is concerned. They’ve surprised several times in the last couple of years, notably on telling the administration that their Obamacare penalty was actually a tax (which they said it wasn’t) and that gave them the authority to charge it.

      • August 31, 2015 at 10:56 am
        Agent says:
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        Transformer, if you like your tax, you can keep it.



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