franchise liability News

McDonald’s Franchisee Agrees to Pay $4.4M Over Manager’s Sexual Assault of Teen

A franchisee of fast food giant McDonald’s has agreed to pay a teenage girl $4.4 million to settle her lawsuit over having been sexually assaulted by a Pittsburgh-area restaurant manager who was a registered sex offender, the victim’s lawyers announced …

McDonald’s Defeats Black Franchisees’ $1B Bias Lawsuit, For Now

McDonald’s Corp. has temporarily beat back a lawsuit by 52 Black former franchise owners who claim the fast-food giant set them up for failure by steering them towards crime-ridden, low-income neighborhoods. A federal judge in Chicago dismissed the 2020 lawsuit …

Union Sues to Overturn Trump-Era Rule that Narrowed Definition of ‘Joint Employer’

The union behind the “Fight for $15” movement is suing to overturn a Trump-era rule that makes it harder to hold companies like McDonald’s Corp. and Amazon.com Inc. accountable for violations of franchised or sub-contracted workers’ rights. In a lawsuit …

McDonald’s to Require Employee Training to Combat Harassment, Discrimination

McDonald’s Corp said on Wednesday it will require new training and policies to combat harassment, discrimination and violence at its 39,000 restaurants worldwide, calling for safer work places after it faced lawsuits by some female employees. The burger chain said …

McDonald’s Seeks Dismissal of Racial Bias Claims by Black Former Franchise Owners

McDonald’s Corp. on Friday urged a U.S. judge to dismiss a lawsuit by dozens of Black former franchise owners who accused the fast-food giant of racial discrimination for selling them underperforming stores, saying it did not want them to fail …

Trump Labor Rule That Narrows ‘Joint Employer’ Standard Struck Down by Judge

A federal judge on Tuesday struck down a Trump administration rule that narrowed the definition of “joint employer,” and which the attorneys general of 17 states and Washington, D.C. said would eliminate important labor protections for workers. U.S. District Judge …

Lawsuit by Former Black Franchisees Accuses McDonald’s of Racial Discrimination

McDonald’s Corp. is the subject of a lawsuit by more than 50 Black former franchisees in the U.S. who say they were driven out of business after being pushed by the company to set up shop in crime-ridden areas and …

Employee Class Action Accuses McDonald’s of Climate of ‘Pervasive Sexual Harassment’

McDonald’s Corp. has been hit with a class action lawsuit accusing it of subjecting female employees in its corporate-owned fast-food restaurants in Florida to widespread sexual harassment. The lawsuit, filed on Friday in federal court in Chicago, says the company …

Board Finalizes Rule Scaling Back Joint Employer Liability for Franchisees, Contractors

A U.S. labor board on Tuesday finalized a rule that will make it more difficult to hold companies liable for unlawful labor practices by franchisees and contractors, reversing a more worker-friendly Obama-era standard criticized by business groups. The rule by …

Trump Administration Issues New Rule on Joint Employer Liability

The Trump Administration announced a final rule setting forth standards for determining joint employer status under the Fair Labor Standards Act (FLSA), a rule that has been sought by franchisers and companies that employ contract workers. The new rule from …