Labor Department to Clarify Franchise Rule, Acosta Says (1)

The Labor Department is “giving serious consideration to writing a rule” to clarify when a franchise is liable for acts by its franchisees, Secretary Alexander Acosta told a hospitality industry group Sept. 12.

“I want to let you know that we’re in the process of considering how to provide a more clear and more permanent approach to joint employer,” Acosta said to applause. “It’s so important to know the rules of the road” when it comes to joint employer liability, he said.

The DOL has been working on an initiative to restrict situations in which one business can be liable ...