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How the Labor Relations Board's Joint Employer Stipulation Could Change Franchisor Models


Last year, the National Labor Relations Board (NLRB) held hearings over whether a fast food company exerted control that was “beyond protection of the brand,” making it a “joint employer” with its franchisees. A court decision on the NLRB’s change is expected this year, so retailers, restaurants, and other businesses operating under a franchisor/franchisee structure should prepare for what could be sweeping, dramatic changes to their operating and business models.

To update companies on the potential impact of the change and help them prepare, experts from AIG, Jackson Lewis, and Marsh held a one-hour webcast exploring the potential impacts the use of a broader definition of the term “joint employer” could have on franchisor/franchisee model businesses. The ruling may have profound implications, from altering wage/hour and other employment practices liabilities to operational and human resources challenges.

Among the topics covered:

  • Implications of the NLRB ruling on franchisee/franchisor models.
  • Steps franchisors and franchisee operators can take to anticipate the ruling.
  • Human resource and human capital implications.
  • Employment practices liability implications and coverage.
  • Wage and hour risk transfer solutions.

The webcast featured:

  • Wendy Melk, attorney, Jackson Lewis Associates.
  • Kelly Thoerig, vice president, Marsh FINPRO Practice.
  • Lara Bruzzese, AIG, Employment Practices Liability.

Listen to the replay.