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Significant Win for Franchisors as McDonald's Dodges Franchisee Wage and Hour Claims

In a major victory for franchisors, a panel of the Ninth Circuit recently held that McDonald's Corporation cannot be liable as a joint employer for the wage and hour violations of its franchisees. Importantly, the court held that McDonald's involvement with its franchises and franchise workers is focused on maintaining brand standards and "does not represent control over wages, hours or working conditions." However, uncertainty remains over the liability of franchisors that impose more than just branding and marketing standards on its franchisees. More ›

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