national · laws
Feds may make franchisors legally responsible for your employees
Original headline: “Labor department proposes new joint employer rule”
Why this matters
The Labor Department is proposing a new rule that would expand when two separate businesses, like a franchisor and a franchisee, can be held jointly liable for wage, hour, and labor violations. If finalized, a franchisor or staffing agency that has indirect control over how a restaurant operates could be treated as a co-employer under federal law. For indie operators who use staffing agencies or labor management platforms, this could shift how those contracts are written and who absorbs legal exposure when something goes wrong. Nothing is final yet, but the direction of travel matters now.
What to do
Reread any staffing agency or management service contracts you have and confirm in writing where legal employer liability sits before this rule moves forward.
Curated by Chayadol Sundarapura · nrn →
Published Mon, 04 May 2026 17:36:38 GMT