---
title: "Washington Examiner: Labor Department rescinds expanded 'joint employer' rule"
url: https://burnaze.com/article/2bb1b77d-fe34-48ec-a48a-68666a3867cf
source: "1851 Franchise"
original_url: https://1851franchise.com/washington-examiner-labor-department-rescinds-expanded-joint-employer-rule-12509
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Regulation & legal","Operations"]
published: 2017-06-07T18:13:01.000Z
modified: 2026-11-01T03:12:30.489Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/7f77ddcc31b50ff5e90a3af2381906c98176.jpg
---

# Washington Examiner: Labor Department rescinds expanded 'joint employer' rule

**TL;DR:** The National Labor Relations Board rescinds its expanded 'joint employer' rule, a major victory for the franchise industry. The rule, which was changed in 2015 to include companies with 'indirect control', would have made franchisors liable for the actions of every employee at every franchised location.

*originally published in 1851 Franchise on 2017-06-07. [Read the original](https://1851franchise.com/washington-examiner-labor-department-rescinds-expanded-joint-employer-rule-12509).*

## Story

For the past several years, the most hot-button issue in franchising has been the National Labor Relations Board’s joint employer ruling , which would cause major changes in the way that franchisees hire employees, handle wages, manage staff and more. Prior to 2015, the joint employer doctrine referred to companies that had “direct control” of its employees, but in 2015, the standard was changed to include companies with “indirect control,” effectively making franchisors liable for the actions of every employee at every franchised location in the system.

Proponents of the ruling, who felt that it was unjust and would halt growth of the entire franchise industry, just scored a major victory. According to the Washington Examiner , on Wednesday, June 7, the Labor Department rescinded its ruling, the first step in what franchisors and other groups hope will be a fairer and more permanent solution.

Lauren has more than 12 years of experience in public relations, social media and content production. She has managed internal and external communication to deliver impactful business results for brands in the hospitality, retail, education and e-commerce sectors. Lauren has a Master of Arts in Communication and a Bachelor of Arts in Public Relations and Spanish from Illinois State University. In her spare time, Lauren enjoys reading, traveling and spending time with her husband, son and dog.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- franchise industry (topic)
- regulation (topic)
- National Labor Relations Board (regulator)
- joint employer rule (topic)
- Labor Department (regulator)
- labor department (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/washington-examiner-labor-department-rescinds-expanded-joint-employer-rule-12509). Summarized by Burnaze (https://burnaze.com/article/2bb1b77d-fe34-48ec-a48a-68666a3867cf).