Labor Ruling Has Implications Beyond Fast Food

The general counsel of the National Labor Relations Board ruled July 28 that McDonald’s could be held jointly liable for labor and wage violations by its franchise operators, reported the New York Times. The decision, if upheld, would disrupt longtime practices in the fast-food industry and ease the way for unionizing nationwide.

Some legal experts described the ruling as a far-reaching move that could signal the labor board’s willingness to hold many other companies to the same standard of “joint employer,” making businesses that use subcontractors or temp agencies at least partly liable in cases of overtime, wage or union-organizing violations.

The fast food case, and the "joint employer" question that has implications beyond the Big Mac, will be heard next by administrative judges. Given that McDonald’s is arguing that the legal counsel’s ruling goes against three decades of law, the case could ultimately wind up before the Supreme Court, the Times reported.  S