FOR IMMEDIATE RELEASE
IFA STATEMENT ON MCDONALD’S DECISION
(WASHINGTON, D.C., DECEMBER 12) – The International Franchise Association (IFA) today hailed the NLRB’s decision in a years-long joint employer case against McDonald’s corporation.
The decision found that McDonald’s Corporation did not behave as a joint employer with its franchisees. The case began in 2014, and a joint-employer finding could have held McDonald’s liable for the actions of its franchisees and forced the corporation to bargain with franchise workers who formed a union.
“Finally,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs.
“After five years of litigation, five years of unnecessary legal costs, and five years of uncertainty in the franchise sector, IFA is thrilled the NLRB came to this common-sense conclusion. Franchise businesses are separate businesses; holding one business responsible for the actions of a different business that it does not and can not control is utter nonsense. This decision can bring much-needed clarity to franchise businesses of all sizes,” Haller said.
“Importantly, this settlement allows for the McDonald’s franchisee employees to be compensated and made whole – even after unnecessary case delays that slowed resolution of their claims,” he said.
The NLRB’s decision follows a review of its ethical standards that clarified important questions surrounding board member recusals in the case.
The NLRB is also poised to issue its final rule on the joint employer standard. The expanded joint employer standard led to a 93% increase in lawsuits and cost franchises $33.3 billion annually.
Celebrating 58 years of excellence, education and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.