McDonald’s Lawsuits Raise “Joint Employer” Issue

McDonald’s has been targeted by seven employment lawsuits in three states. A post from Vedder Price says these lawsuits are the result of coordinated effort between plaintiff attorneys and the Service Employees International Union, and represent a new plaintiffs’ lawyer strategy of going after the franchisor. Actions in Michigan and New York are in federal court, while the California lawsuits are in state court. All allege that McDonald’s exerts significant control over franchisee polices and practices, and the Michigan lawsuits specifically allege a “joint employer” relationship between McDonald’s and the franchisee. These cases, the writers says, should remind franchisors to review the policies, training materials and software they share with franchisees, specifically to make sure they avoid the kind of wage-and-hour infraction alleged in the current spate of lawsuits, and more generally to ensure they are not exercising the kind of control that would support the claim of a joint employer relationship.