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11/02/2024 05:27:16 pm

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McDonald’s, Franchisees Face Legal Raps over Labor Violations

Mcdonald's

(Photo : Reuters) A burger set is displayed at a McDonald's restaurant in Hong Kong in this photo illustration taken July 31, 2014.

The National Labor Relations Board (NLRB) filed on Friday complaints against fast food giant McDonald's and some of its franchises for labor violations.

The 13 complaints were in response to the claim of employees of the hamburger chain across the U.S. that they were fired or retaliated because of their taking part in the organization of unions and in national protests that called for higher pay, reports Reuters.

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The retaliation include placing them under surveillance, threats, lesser work hours and subjecting the workers to interrogation.

The case is considered a landmark since it considers McDonald's a joint employer, which makes it liable for the labor breaches of its franchisees, said Richard Griffin, general counsel of the NLRB. The changed definition of what a joint employer had protected McDonald's from liability in the past since the violators were only franchisees and the workers were contractual employees.

Franchisers were only considered joint employers if they were part of hiring the employees and setting the salaries, according to the old definition used by the NLRB for 30 years.


Mary Joyce Carlson, the lawyer for the Fast Food Workers Organizing Committee, the union which led the protest, agreed with NLRB's treatment of McDonald's as joint employer, citing its control over franchises such as the way food is cooked and served.

But trade groups fear the case could cause uncertainty on the enforcement of employment agreements and potential lawsuits for labor violations.

A labor expert at the University of Illinois said the case is expected to result in "a game-changing decision."

McDonalds, which said it would battle the charges, traced the charges to a campaign financed by the union in the past two years that sought to destroy the chain's brand and affect the operations of its restaurants, said Lisa McComb, the spokeswoman of McDonald's.

McDonald's insisted, quoted by Chicago Tribune, "This relationship does not establish a joint employer relationship under the law - and decades of case law support that principle."

Administrative law judges would hear the complaints starting in March 2015. Their decision could be appealed to the NLRB five-man board and further elevated to federal courts.

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