Subway Franchisor Enters Agreement With DOL

The agreement, largely pro forma, nevertheless appears to be a tacit admission that Doctor’s Associates Inc., owner and franchisor for the Subway restaurant chain, is a joint employer of Subway’s workers along with its franchisees. The agreement obligates the franchisor to explore ways to use technology to support franchisee compliance with payroll and scheduling policies. It is likely to be cited, by unions, plaintiffs’ lawyers and other government agencies as evidence that the franchisor can directly or indirectly affect the terms and conditions of employment of its franchisees’ employees, and should be treated as a joint employer with them.