McDonald's will be held jointly liable for any labor disputes workers may have against any of its franchisees.

The National Labor Relations Board made this determination in response to the allegations made by employees that McDonald's and its franchise operators have been violating employees' rights.

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NLRB general counsel Richard Griffin said there were several employees who filed a complaint against McDonald's restaurants for illegally firing employees and for threatening workers who are members of unions.

Griffin said they studied over 180 claims against McDonald's and found merit in 43 of them. The board decided to include the company as joint-employer to make it responsible for actions taken by its restaurants.

Over 90 percent of McDonald's restaurants in the United States are franchises.

Legal experts and business groups were appalled by the decision, saying that it will set off a chain reaction in the board's willingness to turn companies into a "joint employer," which will be liable for labor violations made by a subcontractor.

McDonald's said it will appeal the decision, adding that the board's rulings will not only affect large businesses like restaurant chains, but also retailers who depend on franchising.

McDonald's senior HR executive Heather Smedstad said the company believes there is no legal basis for the ruling and it will contest the case at the administrative trials and subsequent appeal process.

International Franchise Association CEO Steve Caldeira said the NLRB's decision will upset years of legal precedence in franchising operations, in addition to jeopardizing the sanctity of a franchiser-franchisee relationship.  

TagsMcdonalds, national labor relations board