Bloomberg Law
Sept. 13, 2018, 2:13 PMUpdated: Sept. 14, 2018, 3:04 PM

Trump Administration Moves to Limit Franchiser Labor Liability (1) (Corrected)

Hassan A. Kanu
Hassan A. Kanu
Legal Reporter

The federal labor board wants to limit companies’ responsibility for workplace law violations by franchisees, staffing businesses, and other affiliates.

The National Labor Relations Board Sept. 13 proposed a new regulation to resolve the hotly contested issue of when one business is considered a “joint employer” of another’s employees. Joint employers can be forced to collectively bargain with affiliated workers and be made liable for unfair labor practices against those employees.

The board’s proposal—requiring direct control of workers—likely would mean that fewer businesses could be tagged as a joint employer. It would largely revert to a looser standard in place ...

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