Third-party food delivery services via app (e.g., DoorDash, GrubHub, Uber Eats, Postmates, etc.) have become–especially in these pandemic times–a vital part of the restaurant industry ecosystem. And we know that franchise systems regularly utilize and partner with these app-based services. Now, New York City has enacted groundbreaking new laws to regulate these services. Some portions

The Covid-19 pandemic has changed a lot of things, including employment verification. Does your franchise system understand the special provisions the federal government instituted in the I-9 Employment Eligibility Verification process as a result of the pandemic? If not, you could quickly find yourself on the wrong side of the law.

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While the Protect the Right to Organize (PRO) Act was passed by the House of Representatives, it has not been made part of the Biden administration’s infrastructure efforts thus far and does not appear have sufficient support to overcome a certain filibuster in the Senate. Therefore, passage of the Act in its present form is

The California version of the ABC test is arguably the most hostile to franchising. Nonetheless, the risk is not confined to California.

This is because the ABC employee classification test, with variations, has been adopted in a majority of states including, in addition to California: Alaska, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana,

The second troublesome threat is the joint employment standard. The Obama Adminstration DOL caused angst in the franchise industry in January 2016, when it adopted a joint employment standard that focused on “whether the employee is dependent on the potential joint employer who, via an arrangement with the intermediary employer, is benefitting from the work.”

The PRO Act would do serious, and perhaps mortal, damage to the franchise industry. It would make sweeping changes to the National Labor Relations Act (NLRA), the Labor Management Relations Act (LMRA), and the Labor Management and Disclosure Act (LMDA). Most pertinent to franchising, the PRO Act would adopt the California ABC standard for determining

Omens of the Apocalypse for the franchise industry are everywhere:

  • The pending Protect the Right to Organize (PRO) Act;
  • The return of David Weill, author of Fissured Employment and chief architect of the Obama era joint employment standard, to the Department of Labor as Wage and Hour Administrator;
  • Withdrawal of the control-based joint employment standard

Starting on July 1, 2021. the NCAA permitted student-athletes throughout the country to profit from their name, image, and likeness (“NIL”). This decision marks a major shift from the NCAA’s longstanding amateurism model.  Twenty-eight states have also enacted their own NIL laws, and sixteen of those—including Alabama, Florida, Georgia, Mississippi, New Mexico, Texas, Kentucky, Ohio,