The Franchise King®

The Latest News From McDonald’s Is A Big Deal

McDonald's news is a big deal

I’m talking big.

Especially if you’ve been keeping up on what the NLRB is attempting to do to the franchise business.

Keep reading.

 

 

The Latest McDonald’s News

From Buzzfeed.com:

McDonald’s Corp. agreed on Friday to pay $3.75 million to settle a lawsuit with about 800 Bay Area-based franchise workers, who claimed they were owed overtime pay due to flaws in payroll systems and denied state mandated breaks, among other complaints. The settlement is the first time that McDonald’s corporate is paying franchise workers to settle a suit, lawyers said. It must now be approved by a district judge.”

That’s a lot of money-even for a huge franchisor like McDonald’s.



Get My Free Report:
The 3 Most Profitable Franchise Types To Own Right Now
Invalid email address
You'll also receive my FREE VIP Franchise Newsletter

 

 

Why This Is A Big Deal

The National Labor Relations Board (NLRB) announced (a while ago) that its Office of the General Counsel is going to name McDonald’s as a “joint employer” in upcoming court cases. Do you know what a joint employer is?

A joint employer means that the McDonald’s corporation and the McDonald’s franchisees are both considered employers. So, if you’re cooking burgers at a franchise-owned McDonald’s, you have two employers: Your boss and the big boss at McDonald’s corporation in Illinois. That’s a problem.

If you’re fired, who approves your unemployment claim?



Grab This BEFORE You Buy a Franchise

franchise guide

Not After!



If you get hurt, your workman’s comp lawyer can go after…who?

image of an iceburg

Those two examples are the tip of the iceberg in what’s shaping up to be a very confusing potential ruling by the NLRB. There’s more on joint employment from the U.S. Department of Labor. It’s worth a read.

The part that’s the big deal here: McDonald’s just wrote a large check to 800 workers. They’ve never done anything like it before. Their decision to do this is a big deal.

From Buzzfeed:

The fact that McDonald’s settled the case for a substantial amount of money ‘does suggest that its lawyers have concluded that there is some risk’ that it could have been found to be a joint employer had the case moved forward.”

 

 

The Latest News From McDonald’s Is A Big Deal

There’s one more reason why the news of McDonald’s writing the $3.75 million check to these employees is big. The reason…

Unions are going to want in even more. They’re going to push even harder to represent hourly fast-food workers. I don’t see that as a good thing for fast food franchise owners.

This news does not mean the end of franchising as we know it. It does mean there will be a few more headaches for franchisees and franchisors in the future.

That’s why there are lawyers.

 

Please Share This Article!
0Shares

franchise article written by joel libava

Note: When you buy through links on this website, we may earn an affiliate commission. In addition, I've started to use AI to help me craft better article titles and headings.
headshot the franchise king joel libava

I'm The Franchise King®, Joel Libava. For 24+ years, I've helped thousands of people avoid bank account emptying mistakes.
If you want to make a smart, informed decision on franchises to own, I can help you, too! Note:
I'm NOT a franchise broker/consultant/coach.
See how I'm different.

Recommended Reading
Introduction To Franchising
How Much Is A Franchise?
List of SBA Preferred Lenders
What Is The Franchise Fee? How To Buy A Franchise
Best Franchises To Own

Featured Franchises!
Top 33 Business Ideas
Starbucks Coffee Franchises
10 Best Franchise Websites
About Franchise Consultants
How To Read A FDD
Questions To Ask Franchisors
Questions To Ask Franchisees Franchise Discovery Day Franchise Reviews

Free Franchise Tools
Franchise Compatibility Quiz
Net Worth Calculator

"We engaged Joel's services at a very reasonable cost. He has impressive knowledge of this industry, he is honest, and very pleasant to speak to. There is no question that Joel added the clarity and in depth understanding of the franchise business that we needed. I can call Joel a friend. PS. Read his franchise research ebook!"
- Yolanda Wheaton, Georgetown, Texas
Fixed Image Link Best franchise blog

Click The Cover!

franchise research guide
top franchise blog posts 2020
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.