2/26/2018

CONFLICT OF INTERESTS/LABOR: “The National Labor Relations Board on Monday [2-26-18] made it easier for companies that franchise their brands, such as McDonald’s Corp, to be held liable for labor law violations.
The U.S. board overturned its own recent decision limiting corporate liability on the grounds that one of its members, appointed by President Donald Trump, should not have taken part in the December ruling because he had a conflict of interest as the case involved his own former law firm.
Monday’s decision means the law reverts to an Obama-era precedent under which companies which franchise their brand names can be liable for workplace law violations that occur at independently owned businesses that merely rent the franchise… Under the previous ruling, franchisors may be considered joint employers and required to bargain with unions or be held accountable for franchisees’ labor practices. Business groups have said that treating franchisors as employers could upend the franchise model.
Monday’s ruling was a temporary hurdle for the board, which has overruled several decisions made during the administration of Trump’s predecessor, Democrat Barack Obama.”

-Daniel Wiessner, “U.S. labor agency overturns major ruling, citing Trump appointee’s conflict,” Reuters, Feb. 26, 2018 12:55pm