Latest Evolution of Joint Employer Guidance for Franchisors/Franchisees

Wendy McGuire Coats, Megan Walker, and Caroline Pham authored the article, "Latest Evolution of Joint Employer Guidance for Franchisors/Franchisees," featured in WCR. In the article, the trio provide insight on how to treat the employment relationship between a franchisor and its franchisee’s employees.

"The franchise business model can provide great opportunity for entrepreneurs interested in building off an established brand as well as for established restaurants looking to expand.  However, various government agencies and courts have grappled with how to treat the employment relationship between a franchisor and its franchisee’s employees. 

What is “Joint Employment” and Why Does It Matter?

As implied by the name, joint employment exists when two or more entities act as the employee’s employer for a single job.  An example of joint employment To illustrate the relationship, let’s say a franchisor, W·C·M Restaurant Group, seeks to maintain its reputation and uniformity among its franchisees, like W·C·M Eats, by directing or controlling the franchisee’s employment-related policies and decisions. Under some circumstances, W·C·M Restaurant Group and W·C·M Eats may be considered joint employers. "

To read the full article, please visit WCR.