‘Not What Anybody Signed Up For’: A Legal Expert Weighs In on the Labor Rule That Could Destroy Franchising

Some form of the Joint Employer Rule has existed for years, but in 2023, the NLRB expanded it in a way that directly impacted the franchise industry. The expanded rule would impact franchising by broadening the definition of joint employment, potentially making franchisors liable for employees they don’t directly employ or manage.

Since last year, several groups have challenged the expanded rule, mainly a coalition of business organizations led by the International Franchise Association (IFA). Entrepreneur spoke with attorney Jim Paretti of labor relations law firm Littler Mendelson to find out the status of each challenge,

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