From the perspective of the franchise community, the Nov. 8 election may result in some unexpected but pleasant news.
The hottest issue in franchise law over the last few years has been in the joint employer area. In the franchise context, joint employer liability (JEL) could occur when an employee could claim that he or she had not one, but two, employers—one being the franchisor and the other the franchisee. The argument favoring this result is that often both have the right to control the employee; hence, both should be liable for some if not many of the franchisee’s liabilities. These might include state sales and income taxes, tort liability, violations of the labor and employment laws, and so forth.
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