Legal Checkup

Update – Franchisor Liability as Joint-Employer

As recent as April of this year, the Department of Labor (DOL) issued an opinion on what constitutes Joint Employer infractions. There a four relevant factors to consider when presented with a Joint-Employer issue according to this Notice of Proposed Rule-Making: The extent to which the franchisor has the ability to hire and/or terminate the employee, The amount of control the franchisor exercises over the employee’s schedule and conditions under which the employee works, If the franchisor determines how much the franchisee is paid and how often, and Where and by whom the employee files are kept. The DOL believes this to be probative to the actual issues courts are presented: what is the actual involvement of the Franchisor in the Franchisee’s employment practices and thus what is their liability in the employment of their individual agents? This proposed rule creates clearer guidance on topics including if Franchisor-provided training materials not being enough to create a joint-employer situation. Should this rule be adopted, it would not carry the weight of law, but would provide guidance to the interpretation of the FLSA and joint-employer issues. If you are considering franchising, be proactive about understanding your joint-employer liability and contact today to get your answers. You can contact us at (800) 670-8051 or email us your inquiry to . In case you missed it: Franchisor Liability As a Joint-Employer Franchisors have a valid interest in protecting the brand they have worked hard to create. they accomplish this by requiring uniformity from their franchisees and exercising control over certain aspects of their franchisees’ operations. This includes control over the location and look of their franchisees’ places of business, the products and services offered by their franchisees and how intellectual property is utilized and protected by their franchisees. Franchisors also exercise control


The Benefits of a Legal Checkup

Benjamin Franklin first uttered his famous quote that “An ounce of prevention is worth a pound of cure,” in 1735. His belief that preventing a problem now is much easier than being forced to resolve it later is just as applicable today as it was over 280 years ago. This concept is especially relevant to many of the legal issues facing individuals and small businesses in today’s society as the costs associated with resolving a problem through litigation continue to increase. It is a commonly known fact that civil lawsuits are expensive and that the only winners are the lawyers. Regardless of whether you are a plaintiff or defendant in a civil lawsuit, attorneys’ fees alone can cost tens or even hundreds of thousands of dollars, and unfortunately, representing yourself is not a viable option in most cases. These costs can be financially devastating to most individuals and small businesses because in many cases attorneys’ fees cannot be recovered as damages even if you are the successful party in the lawsuit. What is even more frustrating is that many lawsuits could have been avoided if the parties would have consulted with an attorney before taking whatever action or inaction that led to the lawsuit. Unfortunately, once you are served with a lawsuit it is too late. Moreover, almost always this preventative legal advice would have cost a fraction of the legal fees incurred prosecuting or defending the lawsuit. This problem is the reason behind LegalStandard.comsm places emphasis on proactive legal care. Our goal is clear, we want to keep our clients out of the courtroom. The first step in keeping our clients out of the courtroom is getting to know our clients through our innovative Legal Checkup service. This service helps our clients, and us, to recognize potential legal issues before they