Today the National Restaurant Association issued the following statement regarding the National Labor Relations Board’s (NLRB) decision asserting McDonald’s Corporation is a joint employer of its franchisees:
"The ruling by the National Labor Relations Board’s (NLRB) Division of Advice asserting that McDonald’s Corporation is a “joint employer” of its franchisees’ employees overturns 30 years of established law regarding the franchise model in the United States, erodes the proven franchisor/franchisee relationship, and jeopardizes the success of ninety percent of America’s restaurants who are independent operators or franchisees.
"The long-established joint-employer standard has helped create millions of restaurant jobs through the franchisor/franchisee model. NLRB’s attempts to overhaul the law will have dire consequences to franchisees, franchise employees, and the economy as a whole.
"By making franchisors liable for their franchisees’ employment practices and redefining individually owned franchises as ‘big business,’ NLRB would disrupt the franchisor/franchisee relationship and impede entrepreneurship and restaurants’ ability to continue to create jobs, particularly in an increasingly challenging economic environment. The net effect is counterproductive and will indeed create ‘big business.’
"The NLRB’s change to the joint-employer standard is the latest example of a federal agenda aligned against small businesses. From the recent recess appointments of officials to the NLRB who do not respect the contributions of small business to the economy - struck down by the Supreme Court - to proposing a rule allowing for “ambush” elections, reducing the time to organize a union, the NLRB’s actions are overreaching.
"As the nation’s second largest private sector employer, the restaurant industry relies on the vision, innovation, and risk-taking of our startups and franchisees. This decision to change the joint-employer standard will only place undue burden on franchisees which are the backbone of the small business community and a key economic engine of this country."
Angelo Amador, Vice President Labor and Workforce Policy, National Restaurant Association
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