[Hot Air] Back in 2015, the National Labor Relations Board under Barack Obama essentially redefined the word "employer" when talking about franchise agreements by altering definitions in what’s known as the joint employer standard. At the time, I looked over the final changes and simply concluded, "this is going to be bad."
And it was bad. By allowing labor unions to hold franchisers like McDonald’s responsible for labor practices of their franchisees, despite having no direct control over those policies, they opened the door to all manner of lawsuits, government fines, and other mischiefs. Analysts at the time predicted that it would have a trickle-down effect on the franchisees, creating a harsher business climate and leading to uncertainty in hiring and other policies. The NLRB under Donald Trump finally blocked that change and began to unwind it in 2017, but much of the damage was already done. Just how bad was it? A new study from the International Franchise Association and Chamber of Commerce reveals that it led to job losses numbering in the hundreds of thousands. (Free Beacon) |