What the Joint Employer Rule Will Mean for Franchise Restaurants

"Scott, just to clarify, WE are not the employer. The franchisees are. Please make sure everyone understands that and don’t suggest otherwise."I give a lot of keynote presentations to restaurant brands, and most of them are franchises. These brands promise to provide franchisees with the complete playbook for business success. They give them the tools. They teach them the systems. They advise them on how to market their restaurant. But when it comes to offering HR support, many steer clear. Lawyers have spooked them into avoiding conversations about managing employees for fear of taking on the liability of being joint employers. (And I do occasionally get admonishments like the one above before my presentations.) Consequently, many people with little or no management experience are suddenly responsible for hiring, training, and managing employees without the involvement of their franchisor.

That may be about to change. Recently, the National Labor Relations Board redefined what it…