Accessibility Tools

Skip to main content

NLRB APPROVES McDONALD'S SETTLEMENTS THUS DISALLOWING JOINT EMPLOYER

Written on .

The joint employment issue is high on the agenda of the main employment agencies, including the NLRB, the Department of Labor (DOL) and the EEOC.  While the joint employment issue has been litigated in a variety of forums, perhaps the most publicized forum was the NLRB case involving McDonald's, in which the Obama-era NLRB General Counsel contended that McDonald's and its franchisees were joint employers. 

The litigation continued for almost three years, and although a settlement agreement was reached, an NLRB administrative law judge denied motions to approve the settlement agreements.  On special appeal to the Board, the Board remanded the case to the judge with the instructions to approve the settlement agreements.  Applying various "reasonableness" factors, the majority found, contrary to the judge, that the settlement agreements are reasonable, they provide a full remedy to all affected employees, and accepting the settlement agreements would serve the policies of the Labor Act.  Significantly, the settlements do not impose joint liability on McDonald's, as the liabilities are basically limited to the franchisees.  Thus, under the settlement, McDonald's avoids any joint employer finding.

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

Recent Content

airport, fence
On Friday the United States Supreme Court lifted the stay that prevented the federal government from removing people who have parole status…
venezuelan flag
The Trump Administration’s immigration actions have created confusion and frustration for employers who are trying to maintain a legal and…
a painted of a different looking people
In the Guidance from the Equal Employment Opportunity Commission (EEOC) and the Department of Justice (DOJ) released March 19, 2025, the go…
seating, indoors, government building
Occasionally, Immigration & Customs Enforcement (ICE) agents, or those from other state and local agencies, come to an employer’s facil…
irst woman jury, Los Angeles
Fairness is a fundamental human instinct.  For example, whatever the rights and wrongs of an employee’s firing, the manner in which the emp…
person reading newspaper on bench outside
Although the list of current issues that are relatively new and critical affecting employment decisions could get quite lengthy, this autho…