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"McDonald's Wage Deal May Be Warning To Other Franchisor"

November 14, 2016

Law360, a leading legal industry news outlet, called on Nexsen Pruet employment and labor law specialist Molly Cherry.  The November 2nd article was entitled "McDonald's Wage Deal May Be Warning To Other Franchisors."

Reporter Vin Gurrieri called on Cherry for insight following the fast-food giant's "decision to pay a franchisee's workers $3.75 million to settle a wage-and-hour class action."

An excerpt:

"In other words, [McDonald's] settlement should not directly affect other cases, including the unfair labor practice cases before the NLRB," Hughes Cherry said. "Moreover, the NLRB case will be decided under the National Labor Relations Act, not the Fair Labor Standards Act."

But even though last week's settlement won't have any direct effect on any pending litigation, Hughes Cherry said it still may indirectly impact the franchise industry in terms of how other franchisors and franchisees conduct business.

"The current climate of litigation emphasizes how important it is that franchisors not exercise control over franchisee employees," Hughes Cherry said. "Franchisors should not get involved in or exert any authority over the training, hiring, firing, wages, hours or other terms and conditions of employment for the employees of their franchisees."

The complete report from Law360.

Molly Cherry is a Certified Specialist in Employment and Labor Law by the South Carolina Supreme Court. She takes pride in advising clients in an effort to help them avoid potential legal pitfalls and to reach business goals.