Franchise Sector to See Impact of New Labor Relations Rules, Franchising Magazine USA

New Era Chairman and Co-Founder Collin Williams writes for Franchising Magazine USA about the 2023 guidance from the National Labor Relations Board’s (NLRB) regarding joint employers.

“This new standard codifies a broad expansion of the previous definition of joint employers enacted in 2020,” Collin writes. “Importantly, there are no carve-outs or exceptions that would potentially exempt franchisors and franchisees provided by the NLRB in the new standard. You can imagine a simple scenario in a franchisor-franchisee relationship where the franchisor requires of the franchisee certain benefits, hours of operation, and working conditions (perhaps as rudimentary as uniforms) as a part of being a franchise. Under the new standard, what were previously considered simple requirements establishing uniformity across franchises could now make the franchisor a joint employer.”

Read Collin’s column in Franchising Magazine USA here.