Posts tagged McDonald’s
Opinion: NLRB says ‘common law’ — and common sense — defines joint employers
December 5, 2023 // The mandate, to take effect Dec. 26, says when two employers — think a local McDonald’s franchise and McDonald’s headquarters in Chicago — control a worker’s toil, from wages and hours to duties and work rules to hiring and firing to uniforms and training, then both are responsible for obeying or breaking Labor law. And that means it should be easier for workers to organize and bargain without being bounced from pillar to post when it comes to whom to bargain with. Using that same “basic common sense” explanation, AFL-CIO President Liz Shuler called the new rule “an important win” for workers.
U.S. labor board delays new unionization rule after business groups sue
November 20, 2023 // The U.S. Chamber of Commerce and other business groups — including the American Hotel and Lodging Association, the International Franchise Association and the National Retail Federation — sued the NLRB in federal court in Texas last week to block the rule. They say the rule upends years of precedent and could make companies liable for workers they don’t employ at workplaces they don’t own. But the NLRB says the current rule makes it too easy for companies to avoid their legal responsibility to bargain with workers.
New federal rule could allow millions of workers to more easily unionize at big companies
November 16, 2023 // The rule only applies to labor relations. The Department of Labor sets its own joint employment standards for issues like meeting minimum wage requirements. Still, the new rule could have a major impact. Local franchise owners employ more than 8 million people in the U.S., according to the International Franchise Association. Millions more work for subcontractors or temporary agencies.
Fast-food prices hiked after California ups minimum wage
November 13, 2023 // In that January article, I called this “the iron law of California progressivism: Claim that new laws will help the poor. When the actual effect turns out to be catastrophic for the poor, blame capitalism/markets/billionaires/racism, and expand government control of the business. Rinse, repeat, and promote as a national — even global — model for equity. And if Californians have anything to say about it, AB 257 will be coming to you, no matter where you live in the United States.” Indeed, Biden’s forever-acting Secretary of Labor Julie Su has already expressed her unbridled enthusiasm for California’s policy. That’s no surprise, either: Su was California’s secretary of labor, and is closely tied to the union leadership behind a number of execrable labor policies. Among the most notorious is AB 5, the law that banned independent contracting in key industries, including Uber drivers and trucking companies. When AB 257 emerged from the same fetid philosophical swamp, there was Su, now part of the Biden administration, telling the bill’s supporters, “The Department of Labor stands with you. The Biden-Harris Administration stands with you.”
Commentary: New Biden ‘Joint Employer’ regulation is a boon for unions
November 13, 2023 // In short, joint employment is a possible means for unions to organize major corporations all at once, rather than the piecemeal process of organizing workers at one location at a time. Incidentally, two of the board’s three Democrat majority members are David Prouty, former general counsel of the service employee union UNITE HERE, and Gwynne Wilcox, a former lawyer for the Service Employees International Union. Chairwoman Lauren McFerran served as a staffer of former Sen. Tom Harkin, a longtime union ally.
Franchisors may be more liable for employees under broadened joint employer rule
October 26, 2023 // The National Labor Relations Board just issued a final labor rule that broadens the joint employer rule to make companies jointly liable with their franchisees for labor terms and conditions such as union contracts, pay, scheduling, and more, reviving an Obama-era rule that was limited in scope during the Trump Administration. Moving forward, franchisors will likely need to become more involved in creating and enforcing workplace policies, something that previously was left mainly up to franchisees. According to the National Labor Relations Board, this is a legal course correction back to the way the joint employer rule originally worked. Related: Appeal of McDonald's joint employer settlement denied by Labor board “The Board’s new joint-employer standard reflects both a legally correct return to common-law principles and a practical approach to ensuring that the entities effectively exercising control over workers’ critical terms of employment respect their bargaining obligations under the NLRA,” NLRB chairman Lauren McFerran said in a statement. “While the final rule establishes a uniform joint-employer standard, the board will still conduct a fact-specific analysis on a case-by-case basis to determine whether two or more employers meet the standard.” Trade organizations and business groups have pushed back against the ruling, with the National Restaurant Association and Restaurant Law Center, stating that it will “create chaos and legal questions” across the industry, as restaurants with franchisees try to figure out how to change their operational policies to fit the new rule. Related: NLRB to rule on joint employer status by summer “Today’s final rule on joint employer is a heavy blow to small business restaurant operators,” Sean Kennedy, executive vice president for Public Affairs at the National Restaurant Association said in a statement, adding that almost one-third of the restaurant industry would be affected by this rule. “The rule upends employment policy, adopting a far-fetched definition of ‘employer’ based on ‘indirect or potential influence’ of an employee and then fails to define how ‘indirect control’ will count toward a joint employer relationship.” The previous rule, which was finalized by the Department of Labor under the Trump administration in Jan. 2020, adopted a four-part test for assessing whether a company is a joint employer of another company’s workers, like the franchisor-franchisee relationship. Previously, companies were given joint employer status if they exercised “direct and immediate control” over the key terms of another organization's employees, like a franchisee. Now, that definition has been expanded to companies jointly classified as "sharing or co-determining” employment terms (like pay, scheduling, workplace rules, etc.).
This New Labor Rule Could Be Trouble for McDonald’s
October 5, 2023 // McDonald’s and other franchise companies have made it clear they believe the stakes are high. The “reality is that our business model is under attack,” CEO Chris Kempczinski said of possible joint-employer regulations in a speech at a franchising industry conference in Las Vegas earlier this year, in remarks he also published on LinkedIn. Changes by the NLRB, he said, would transform franchisees “from independent small-business owners to employees of the parent brands.” Heightened joint-employer liability could hurt the franchise model in two main ways, according to the International Franchise Association. One possibility, along the lines of what Kempczinski described, is that a franchisor would exert more control over the franchisees. That undercuts one of franchisors’ big selling points to potential franchisees—that they’re offering a path to running their own business, with all of the freedoms that provides. It could also add compliance costs, and potentially, legal and liability expenses. Those increased costs are also a frequent worry for franchisees, says restaurant consultant John Gordon, principal at Pacific Management Consulting Group. Franchisees typically pay franchisors a percentage of their sales, and their profit comes after those fees and their operating expenses. Franchisees are “justifiably afraid of the franchisor passing costs onto them that weren’t part of the franchise agreement,” he says, and wary of joint-employer liability for that reason.
California fast food workers to get $20 minimum wage under new deal between labor and the industry
September 12, 2023 // Before the law could take effect, the fast food industry gathered enough signatures to qualify a referendum on the law in the November 2024 election. That meant the law would be on hold until voters could decide whether to overturn it. Furious, labor unions sponsored legislation this year that would have made fast food companies like McDonald’s liable for any misdeeds of their mostly independent franchise operators in the state. Democratic lawmakers also restored funding to the Industrial Welfare Commission, a long-dormant state agency that has the power to set wage and workplace standards for multiple industries.
California’s on the cusp of transforming America’s fast food industry — again
August 16, 2023 // “Because it’s so many stores, and going store to store would be difficult, the path to unionization here is basically through legislation,” said Brandon Dawkins, SEIU 1021 vice president of organizing. “After we get the council together and force the employer to the table, then the unions — we can come in and really sit down and negotiate with the corporations to, number one, create a union and, number two, address issues like safety and wage theft.” A labor council’s purview extends to workplace conditions like predictable scheduling — a longstanding goal for labor — noted California Labor Federation Executive Officer Lorena Gonzalez, a former state lawmaker who carried an earlier version of the bill when she served in the state Assembly. “If you get joint employer liability, it’s more likely McDonald’s would want to talk about a national agreement or strategy because now they’re on the hook for every labor violation,” Gonzalez said. That tactic has angered restaurant operators who have rallied against the legislation. Marisol Sanchez, a second-generation McDonald’s franchise owner, has appeared in advertising opposing the 2023 bill. Sanchez said she believed SEIU was acting on its own political agenda rather than in response to worker demands.
Summer of discontent: will US strikes spell trouble for ‘union guy’ Biden?
July 24, 2023 // On Thursday he was at the Philadelphia Shipyard in Pennsylvania to promote “Bidenomics”, a recently adopted slogan. The president said: “We have a plan that’s turning things around pretty quickly. ‘Bidenomics’ is just another way of saying ‘Restore the American Dream’.” But that message is still struggling to break through with voters. In a CNBC All-America Economic Survey released this week, 37% approve of Biden’s handling of the economy and 58% disapprove. In a Monmouth University poll, only three in 10 Americans feel the country is doing a better job recovering economically than the rest of the world since the pandemic. There is a baffling disconnect between these opinions and data that shows America defying predictions of recession and curbing price rises faster than other major economies. Inflation has fallen from 9% to 3% and is now at its lowest point in more than two years.