NLRB NAMES MCDONALD’S CORPORATION AS ‘JOINT EMPLOYER’ FOR FRANCHISEE LABOR VIOLATIONS

As we stated in our previous blog, NLRB general counsel, Richard Griffin, determined that McDonald’s Corporation is jointly liable for the unfair labor practices of its franchisee operators. Consequently, last week, Griffin announced that the he has issued complaints against both McDonald’s USA LLC as well as its franchisees over alleged labor law violations on the premise that McDonald’s Corporation was a “joint employer” of workers at its franchisees. The complaints allege that McDonald’s and certain franchisees violated the rights of workers who took steps to improve their wages and working conditions by making statements and taking actions against them for participating in nationwide protests and others activities during the past 2 years. The NLRB stated that McDonald’s, through its franchise relationships, “engages in sufficient control over its franchisees’ operations, beyond protection of the brand, to make it a putative joint employer with its franchisees, sharing liability for violations.” Griffin stated is would proceed with 13 cases involving nearly 80 allegations against McDonald’s and affiliated storeowners.

NLRB RULES THAT WORK EMAIL PERMITTED TO BE USED FOR UNION ORGANIZING

In a decision overruling a past ruling, the NLRB held last week that employers could not prohibit employees from using their work email to communicate with others regarding union organization during non-work periods. The majority held that the workplace is “uniquely appropriate” and “the natural gathering place for such communications,” and also noted that “the use of email as a common form of workplace communication has expanded dramatically in recent years.” The Board was cautious, however, and stated that this ruling would only apply to those workers who were granted access to the employer’s email system in the course of their work, and that an employer may justify a total ban on non-work use of email if it was necessary for purposes of production or discipline.

The case was brought by the union, Communications Workers of America, which unsuccessfully attempted to unionize workers at Purple Communications, Inc., a California-based company, and alleged that the company’s email restrictions violated the National Labor Relations Act. In rendering its decision, the Board balanced employers’ property rights with workers’ freedom to communicate and organize. The full decision could be read here.

NLRB RULES THAT MCDONALDS IS JOINTLY LIABLE FOR UNFAIR LABOR PRACTICES OF ITS FRANCHISEE OPERATORS

This week, the general counsel of the National Labor Relations Board, Richard R. Griffin Jr., determined that McDonald’s is jointly liable for the employment actions of its franchisee operators.  This ruling comes after various complaints that McDonald’s and its franchisees committed unfair labor practices, including illegal firing, threatening or penalizing workers for pro-labor activities.   If McDonald’s is considered to be a joint employer, it can be held liable if one of its franchisees violates labor laws and even wage and hour laws by not paying minimum wage or overtime.

McDonald’s has approximately 13,000 franchised restaurants in the United States.  Legal experts have predicted that classifying McDonald’s as a joint employer with its franchisee operators will open the door to similar classifications in other industries and companies besides McDonald’s and fast-food chains.  This determination will likely be reviewed by an Administrative Law Judge and the full five-member Board in Washington.

This firm will continue to monitor the developments regarding this decision.

NLRB RULES THAT MERCEDES BENZ PLANT VIOLATED LABOR LAWS REGARDING WORKERS’ RIGHT TO DISTRIBUTE UNION LITERATURE

Last week, Judge Keltner Locke, an administrative law judge for the National Labor Relations Board, ruled that Mercedes Benz U.S. International violated the rights of workers in its plant by not permitting the distribution of union literature in certain areas of the plant.

  Mercedes Benz stated that these restrictions were designed to protect worker safety and production. Judge Locke ruled that employees who are on non-working time can solicit pro-union support from other employees in areas including work areas.

Mercedes Benz ordered the automaker to amend its rules regarding the solicitation and distribution of materials at the plant when employees are considering unionization.  The National Labor Relations Act guarantees the right of workers to distribute union literature and communicate with each other at the workplace during non-work time, e.g., breaks or lunchtime.

  Companies who wish to block a union organizing campaign often have rules to prevent this and discipline employees for violating the rules.  Here, the NLRB ruled that Mercedes Benz’s rules violated the law and ordered them to revoke these unlawful rules.