The hotel industry fosters opportunities for entrepreneurs across the country to open hotels through the franchise model. For more than 30 years, one of the cornerstones of labor law was the joint employer standard, which protected small businesses from undue liability involving employees over whom they do not have direct control.
In the 2015 Browning-Ferris (BFI) decision, the National Labor Relations Board (NLRB) reversed more than three decades of labor law when they redefined what it means to be a joint employer. The BFI standard makes businesses potentially liable for the actions of employees over whom they have no direct or immediate control. This creates uncertainty for employers and hurts franchisors and franchisees alike.