McDonald’s Corporation (MCD)’s Might Face Liabilities for Its Franchisees

The ruling by the National Labor Relations Board (NLRB) that stated that McDonald’s Corporation (NYSE:MCD) should be treated as a joint employer, together with its franchised restaurants, continues to elicit debate in the food industry. The Ruling essentially mounts more troubles and responsibility on the fast food chain, which will now be held responsible for any labor or wage violations by the franchisees.

McDonald's Corporation (NYSE:MCD)

The National employment project has been a staunch supporter of workers’ grievances, especially on the franchise level, reiterating they should always be protected and addressed by the mother company.

“The National employment law project, which has backed nationwide protests by McDonald’s Corporation (NYSE:MCD) workers, says the ruling finally recognizes the control McDonald’s Corporate has over its franchises, and the group says with real control, comes real responsibility and accountability [...],” said Scott Cohn on CNBC.

The ruling comes amidst increased complaints by McDonald’s Corporation (NYSE:MCD)’s workers who have accused it and its franchises of unfair labor practices on allegations of illegal dismissals as well as dismissal when engaging in any form of pro-labor activities. The NRLB council has been reviewing the number of complaints raised by the workers, a move that might see McDonalds facing more liabilities.

“[...] That seems to be  what the NRLB general council office has in mind it has been reviewing dozens of complaints against franchisees and Corporate, surrounding those protests and the cases that go forward McDonald’s Corporate could now face liability,” said Mr. Cohn.

McDonald’s Corporation (NYSE:MCD) says it will fight as “[...] this decision changes the rules for thousands of small businesses, and goes against decades of established law regarding the franchise model in the United States [...].” The National Restaurant Association has already shown its support for McDonald’s stating through its vice president, Angelo Amador, that the ruling will only put a hurdle on restaurants creating more jobs.

The association of restaurants maintains that at the current trend, it is going to be extremely expensive to become a franchise. McDonald’s Corporation (NYSE:MCD) has already stated that it does determine decisions on hiring or wages at its franchised restaurants.

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!