US decision treats franchisors as joint employers of franchisee staff

“The staff decision issued today by the National Labor Relations Board recommending that McDonald’s and its franchisees should be considered joint employers gives a whole new meaning to the word ‘outrageous,’  David French, the National Retail Federation’s senior vice president for government relations, said in a statement.

McDonald’s and other fast-food operators — pressured by union groups in recent months to raise wages and improve working conditions — have said franchisees are independent business owners who set their own policies. But activists said the decision was proof McDonald’s controls its franchisees more than it claims to.

“The reality is that McDonald’s requires franchisees to adhere to such regimented rules and regulations that there’s no doubt who’s really in charge,” said Micah Wissinger, an attorney at Levy Ratner who brought the case on behalf of McDonald’s workers in New York City.

Also read QSR magazine's report.