In the article "3 Tips Now That DOL's Joint Employer Rule Is Struck Down," Law360 reports that U.S. District Judge Gregory Woods of the Southern District of New York held Sept. 8 that the DOL strayed too far from court interpretations of what it takes to be considered a joint employer under the Fair Labor Standards Act.
The legal industry publication turned to partner Brian Schnell for insight on this decision's impact on franchise companies and how they structure their business operations.
"We have gone back and forth on this several times over the last few years," said Schnell.
Joint employment is a major concern for the franchise business model, Schnell told Law360, because the bigger company wants to be able to advise a franchisee on best practices for running the business but doesn't want to be named a co-defendant in employment lawsuits.
According to Law360, industry insiders expect that the issue is likely to be resolved in an appeals court.