---
title: "A New Joint-Employer Rule Could Change Everything for Franchisors"
url: https://burnaze.com/article/9c25f148-ac88-4f4a-a492-9b9848680724
source: "1851 Franchise"
original_url: https://1851franchise.com/a-new-joint-employer-rule-could-change-everything-for-franchisors-2708086
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Regulation & legal"]
published: 2018-10-05T16:11:01.000Z
modified: 2026-11-01T04:08:47.058Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/4c5db1a16ff2064273ae735b1aac354f7715.jpg
---

# A New Joint-Employer Rule Could Change Everything for Franchisors

**TL;DR:** The National Labor Relations Board is considering a new joint-employer rule that could change the liability of franchisors for claims made against franchise owners. The proposed rule would dismantle the current standard, which allows franchisors to be held liable as joint employers for any claims made against franchise owners.

*originally published in 1851 Franchise on 2018-10-05. [Read the original](https://1851franchise.com/a-new-joint-employer-rule-could-change-everything-for-franchisors-2708086).*

## Story

In the coming months, the National Labor Relations Board will decide on proposed rule that will modify its joint-employer standard. The current standard allows franchisors to be held liable as joint employers for any claims made against franchise owners. The change would effectively dismantle that standard, meaning franchisors would no longer be considered employers of staff at franchise units.

The public comment period for the proposed rule is currently underway, and *Fast Casual* took a look at how the industry is reacting. According to employment attorney Adam Chotiner, the change would be an unmitigated victory for franchisors.

“In general, this is definitely something that management ... is greatly in favor of,” Chotiner said. “That's one of the reasons companies franchise, so they can say (to franchisees), ‘Here you go, now you and your business go ahead and leave us out of the day-to-day labor relation issues.’”

Teófilo L. Reyes, the National Research Director for ROC United, which advocates for the rights of restaurant workers, says the change will be a blow to employees.

“The NLRB's rule change is detrimental to all restaurant workers who work in franchise operations, and all restaurant workers who will see working conditions deteriorate," Reyes said. “This proposed rule will increase the monopsony power of the industry to keep wages and working conditions artificially low.”

The public comment period will end on November 13, after which a final rule will be written and imposed nationally.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- regulation (topic)
- National Labor Relations Board (regulator)
- joint employer rule (topic)
- labor relations (topic)
- franchisor liability (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/a-new-joint-employer-rule-could-change-everything-for-franchisors-2708086). Summarized by Burnaze (https://burnaze.com/article/9c25f148-ac88-4f4a-a492-9b9848680724).