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IFA LEADER: EXPECT MORE LITIGATION, HIGHER COSTS IF NLRB JOINT-EMPLOYER DECISION ALLOWED TO STAND

By Terry Hill

 

The U.S. National Labor Relations Board’s arbitrary, pro-union joint-employer decision to expand franchisors’ responsibilities — making them more liable for the employment practice of their franchisees — could trigger an exponential increase in litigation, International Franchise Association President & CEO Steve Caldeira, CFE, told the nation’s restaurant leaders recently during the 2015 Restaurant Leadership Conference in March.

RLC is the “top-to-top,” invitation-only event where the most progressive and influential individuals in the restaurant industry gather each year. It offers an inside track of key information on what 2,000 industry executives see as opportunities and challenges, the hype and the real success.

Caldeira, who moderated a popular session on ways to restaurateurs could protect their businesses by joining the Coalition to Save Local Businesses, has been leading an aggressive challenge to the agency’s decision. He warned that the NLRB decision could also lead to a quantum leap in brand owners’ costs and jeopardize franchisee equity, control and future franchise ownership opportunities.

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