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NLRB narrows franchisors' liability with new joint employer standard

The redefinition narrows the circumstances under which a restaurant brand's owner can be held accountable for a franchisee's possible violation of union protection laws.

Workforce

NYC wants to curtail QSRs’ ability to fire employees, cut hours

Proposals under consideration would require proof of a just cause, as well as remedial action beforehand. Employers would also have to meet certain requirements to cut hours and lay off staff. And its proponents leave no doubt that they expect the measures to catch on across the country.

Salaried restaurant employees would not be exempt starting next year unless they earn more than $40,460.

As of 2021, salaried employees earning less than $45,500 will be entitled to time and a half for hours exceeding 12 per day or 40 per week.

Its new rule spells out when a restaurant franchisor is liable for the compensation and scheduling practices of its franchisees, eliminating much of the uncertainty that fostered legal actions.

But other industries will lose that break for employers under proposals that were put forth this week.

The decision from the NLRB reverses its policy that employees had the right to use their employers’ email to communicate with co-workers about nonwork matters, including unionization.

The law would also eliminate the use of foam-type drink cups as of 2022.

Several West Coast regions will push their minimum past $16 an hour.

Their attorneys general say DOL’s proposed new guideline would be illegal and an intended solution to problems that aren’t evident.

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