California $20 Fast-Food Wage Ditches Joint Franchiser Liability

A legislative deal for a $20 minimum wage in California’s fast-food industry would give employees a big raise, but would also force labor advocates to postpone an ambitious goal, imposing joint employer liability on franchise-chain owners.

Expanded joint employer liability, which has long been on US labor groups’ wishlists, would let fast food workers sue deep-pocketed corporate franchise owners—giants such as McDonald’s Corp. and Taco Bell parent Yum! Brands Inc.— for violations ranging from withholding overtime pay to workplace discrimination. Employees at franchised locations currently are almost always limited to pursuing claims only against the franchisees that own and ...