Woha: Ruling Against McDonald’s Could Open Door for Union Instigation All Over the Place

NYT reports:

The general counsel of the National Labor Relations Board ruled on Tuesday that McDonald's could be held jointly liable for labor and wage violations by its franchise operators — a decision that, if upheld, would disrupt longtime practices in the fast-food industry and ease the way for unionizing nationwide.

Business groups called the decision outrageous. Some legal experts described it 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 workers who filed cases asserted that McDonald's was a joint employer on the grounds that it orders its franchise owners to strictly follow its rules on food, cleanliness and employment practices and that McDonald's often owns the restaurants that franchisees use.

McDonald's said it would contest the decision, warning that the ruling would affect not only the fast-food industry but businesses like dry cleaners and car dealerships.

Heather Smedstad, a senior vice president for McDonald's, said the N.L.R.B.'s move was wrong because the company does not determine or help determine decisions on hiring, wages or other employment matters. "McDonald's also believes that this decision changes the rules for thousands of small businesses, and goes against decades of established law," she said.