Labor Board’s Joint Employer Rule Faces Court, Congress Hurdles

The National Labor Relations Board’s new rule for determining when two businesses jointly employ the same workers will face challenges in litigation and on Capitol Hill.

The International Franchise Association, whose members include McDonald’s Corp., Yum! Brands Inc., and Subway IP LLC, has vowed to stop the rule issued Thursday by any means, including a lawsuit. Sens. Bill Cassidy (R-La.) and Joe Manchin (D-W.Va.) said they’ll introduce a Congressional Review Act resolution to kill the regulation.

The double-barreled opposition underscores the extent to which many businesses—especially in the franchise industry—feel threatened by the new joint employer rule. Joint ...