OPINIONWorkforce

Can the redefinition of 'joint employer' be stopped?

Working Lunch: The National Labor Relations Board's controversial move is likely to be challenged immediately in court. The franchise community is also likely to push for use of the Congressional Review Act. But will either effort succeed?

With regulators’ decision last week to hold franchisors accountable for the labor practices of their franchisees, restaurant chains and their advocates are searching for a way to preserve the status quo. Could any Plan B keep the definition of “joint employer” as it is?

This week’s Working Lunch podcast reviews the Hail Marys that restaurant advocates are most likely to try in their effort to thwart the National Labor Relations Board’s attempt to hold franchisors responsible and hence legally liable for a franchisee’s labor practices. The new broadening of franchisors' responsibilities is scheduled to take effect Dec. 26.

Court challenges of the NLRB and its authority to reset the joint employer standards are likely to happen first, and quickly, agreed Franklin Coley and Joe Kefauver, the co-hosts of Working Lunch and business partners in the Orlando, Fla.-based lobbying firm Align Public Strategies.

The effort will also likely extend to invoking the Congressional Review Act, an infrequently used measure that give Congress the authority to overturn executive branch policies and regulations, though on an extremely limited scale. The Act is typically wielded by a new Congress to overturn actions by a president who has been succeeded by someone from the opposite political party.

Do any of the fallback efforts have a chance of succeeding? Press play to find out.

You’ll also get an update on the decades-long effort to curb the fees charged by banks for processing credit card fees. That hope for relief comes from an unlikely source: The Federal Reserve Bank.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners