The National Labor Relations Board on Tuesday told McDonald’s that is can be named a “joint employer” for workers at franchise restaurants, a decision that could hold McDonald’s responsible for conditions in franchisees’ stores, the Associated Press reported.
Workers in California, Michigan and New York have sued McDonald’s and franchise store owners for illegally underpaying workers. McDonald’s argued that it should not be liable since franchises are independently operated.
Lawyers in the case argue that McDonald’s should be considered a joint employer and should be liable for conditions at franchise locations because the company provides software to franchisees that sets an employee-to-sales ratio for the stores.
