The Labor Ruling McDonald’s Has Been Dreading Just Became A Reality

WASHINGTON — McDonald’s, Burger King and every other company that relies on a franchise business model just suffered the legal setback they’ve been fearing for years.

The National Labor Relations Board ruled on Thursday that Browning Ferris Industries, a waste management company, qualifies as a “joint employer” alongside one of its subcontractors. The decision effectively loosens the standards for who can be considered a worker’s boss under labor law, and its impact will be felt in any industry that relies on franchising or outsourcing work. McDonald’s, for instance, could now find itself forced to sit at the bargaining table with workers employed by a franchisee managing one of its restaurants.

That’s a big deal. In the case of McDonald’s, roughly 90 percent of its locations are actually run by franchisees, who are typically considered the workers’ employers. One of the main reasons companies choose to franchise or to outsource work to staffing agencies is to shift workplace responsibilities onto someone else. But if a fast-food brand or a hotel chain can be deemed a “joint employer” along with the smaller company, it can be dragged into labor disputes and negotiations that it conveniently wouldn’t have to worry about otherwise. In theory, such a precedent could even make it easier for workers to unionize as employees under the…READ MORE