The Illinois Attorney General sued the Jimmy John’s fast food franchisor earlier this month , seeking a declaratory judgment that Jimmy John’s non-compete covenants violate the state’s Consumer Fraud and Deceptive Business Practices Act. All employees, including sandwich makers and delivery drivers, are barred from working at any business that earns more than 10% of its revenue from selling submarine and other… Read more »
Over the past several years the National Labor Relations Board (NLRB or Board) has taken an increasingly aggressive position against company employee handbook rules that the Board thinks may be seen by employees as restricting their union organizing and labor dispute rights under Section 7 of the National Labor Act (NLRA or Act). Under the NLRB’s… Read more »
In response to perceived overreaching and abuse by franchisors, the California legislature amended the Franchise Relations Act (CFRA) strengthen franchisees’ rights regarding terminations, non-renewals, and franchise transfers. The changes are effective January 1, 2016. Termination Rights Franchisors retain the right to terminate franchisees without providing a right to “cure”, for reasons such as the abandonment… Read more »
Browning-Ferris Industries of California, Inc. 362 NLRB No. 186 (Aug. 27, 2015) As one commentator noted, the most important franchise case of 2015, Browning Ferris,” isn’t a franchise case”. By a 3-2 vote, the U.S. National Labor Relations Board (NLRB) overturned 30 years’ of precedent in adopting a new, broader, more lax definition of “joint employer”. According to… Read more »
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