Another Reason

…to disband the NLRB.

McDonald’s Corp could be treated as a joint employer with its franchisees in labor complaints, according to a National Labor Relations Board legal determination….

The relationship between a franchisee and the parent franchisor varies in the details of the franchise contract. However, the general nature of the reputation is quite limited. The franchisee gets to use the franchisor name and the franchisor’s marketing and accounting assistance, and it gets the franchisor’s market power in holding down the cost of supplies. In return, the franchisee is bound to the franchisor’s rules regarding the use to which the franchise name is put and the nature, quality, and standardization of the product being sold. The franchisee also is required to refrain from activities that would result in denigration of the franchise name.

There’s nothing in there concerning hiring or employment practices, or anything else involving labor decisions, that tie the franchisor to the franchisee. Existing labor law covers the franchisee’s hiring and employment.

The NLRB knows this, of course, which makes its ruling even more pernicious.

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