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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!