Until a few days ago, parent companies of franchises could disclaim responsibility for labor violations of their franchisees. But The New York Times reports the National Labor Relations Board has thrown a wrench into that comfort, finding McDonald's -- one of the largest franchise operators in the world -- jointly liable for its franchisees' violations.
The NLRB's General Counsel is allowing complaints to proceed against McDonald's as well as certain franchises that allegedly penalized workers for engaging in pro-labor activities. Some of these activities included strikes that included other fast-food franchises like Wendy's and Burger King.
While the statement consists only of a press release, it follows hot on the heels of the NLRB's decision to expand the definition of "joint employer," likely paving the way for more franchiser/franchisee cases like this one.