franchise liability News

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 …

McDonald’s Wins Battle With Labor, Avoids Joint Employer Liability with Franchises

McDonald’s Corp. has won a huge victory in a multiyear legal battle over whether it should share responsibility for alleged labor violations in its franchisees’ restaurants, a case that posed a major threat to the franchise model underlying one of …

Employee Lawsuit Claims McDonald’s Fails to Address Sexual Harassment

Mc Donald’s Corp. was sued on Tuesday by workers in Michigan who accused the fast-food chain of allowing pervasive sexual harassment to flourish at its restaurants nationwide. The proposed class action lawsuit filed in a Michigan state court accused McDonald’s …

Labor Department Moves to Ease Franchisor Liability

The U.S. Department of Labor on Monday issued a proposal that would make it more difficult to prove companies are liable for the wage law violations of their contractors or franchisees, a top priority for business groups. If adopted, the …

U.S. Labor Judge Nixes McDonald’s Deal to Avoid Joint Employer Tag

A judge with a U.S. labor agency on Tuesday rejected McDonald’s Corp.’s proposed settlement of a major case on whether the fast-food company is accountable for alleged labor law violations by franchisees across the country. The settlement proposed in March …