---
title: "NLRB Proposed Joint Employer Rule Can Have Major Impact on Franchises"
url: https://burnaze.com/article/f375887b-399c-4ce1-a32d-0ff2519be348
source: "1851 Franchise"
original_url: https://1851franchise.com/nlrb-proposed-joint-employer-rule-can-have-major-impact-on-franchises-2707867
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Regulation & legal"]
published: 2018-09-14T18:13:02.000Z
modified: 2026-11-01T02:37:02.271Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/d17ec5c7531644a108f89dbc08579bfc704.jpg
---

# NLRB Proposed Joint Employer Rule Can Have Major Impact on Franchises

**TL;DR:** The National Labor Relations Board has proposed rolling back a rule that makes companies liable if their franchisees and contractors commit labor violations. The proposal would undo the board's 2015 Browning-Ferris opinion, an Obama-era rule that made companies liable.

*originally published in 1851 Franchise on 2018-09-14. [Read the original](https://1851franchise.com/nlrb-proposed-joint-employer-rule-can-have-major-impact-on-franchises-2707867).*

## Story

The National Labor Relations Board has proposed rolling back a rule that makes companies liable if their franchisees and contractors commit labor violations, according to a Politico report.

Under the recently proposed rule, a company would only be considered a joint employer of a separate company’s workers - and therefore liable - “if the two employers share or co-determine the employees’ essential terms and conditions of employment, such as hiring, firing, discipline, supervision, and direction,” according to the article.

This proposal would undo the board’s 2015 Browning-Ferris opinion, an Obama-era rule that made the companies liable, according to the article.

The current NLRB has a three-member Republican majority, all of whom were appointed under the Trump administration, and one Democrat who was appointed under the Obama administration and dissented from the proposal, according to Politico.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- franchise regulation (topic)
- National Labor Relations Board (regulator)
- Trump Administration (company)
- joint employer rule (topic)
- labor violations (topic)
- nlrb proposal (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/nlrb-proposed-joint-employer-rule-can-have-major-impact-on-franchises-2707867). Summarized by Burnaze (https://burnaze.com/article/f375887b-399c-4ce1-a32d-0ff2519be348).