WASHINGTON (Sept. 11, 2015) — A recent National Labor Relations Board (NLRB) decision designating nameplate companies to be joint employers with their franchisees and subcontractors continues to draw negative comment from both franchise operations, including some auto service providers, and the associations that represent them.
“There are tens of thousands of brand-name businesses, like fast food restaurants, that are actually small businesses,” said Beth Milito, senior legal counsel for the National Federation of Independent Business (NFIB), regarding the NLRB's 3-2 decision on Aug. 27 in a labor dispute involving Browning Ferris Industries (BFI) of California Inc. and one of its subcontractors, Leadpoint Business Services.
Also weighing in on the NLRB's ruling on joint employer status was the International Franchise Association (IFA), which said the decision “jeopardizes…the future viability of the franchise model of doing business” and threatens millions of jobs at franchised businesses.
- This article appears in the Sept. 14 print edition of Tire Business.
“While Congress is away, the NLRB clearly still plays,” said IFA President and CEO Steve Caldeira, referring to the ruling stating BFI was a joint employer with Leadpoint, a company that supplied employees to BFI to perform various work functions, such as the cleaning and sorting of recycled products.