“As broad as possible” employee definition leaves franchisors and franchisees guessing
Last week, the administrator of the US Department of Labor’s wage and hour division published his anticipated interpretation of the joint employment issue under the Fair Labor Standards Act. While providing some clarification, Administrator David Weil made clear that the DOL views the expansive definition of “employ” to be far broader than the common law control standard and will be viewed in a context that will be “as broad as possible.” This broad interpretation, specifically in the vertical joint employment analysis, will leave franchisors and franchisees guessing where the boundaries are when faced with internal business decisions and whether certain aspects of their franchise concepts will cross the line in to the joint employment world.
Read the full opinion at United States Department of Labor: Administrator’s Interpretation No. 2016-1