U.S. Judge Blocks Rule Extending Reach of Labor Law to Franchisers

Original Article:

Source: Link

A federal judge, siding with business lobbying groups, has blocked a rule that would broaden the reach of federal labor law to make big franchisers like McDonald’s responsible for the conditions of workers they have not directly hired. The judge, J. Campbell Barker of the United States District Court for the Eastern District of Texas, on Friday vacated a rule issued by the National Labor Relations Board determining when a company is a joint employer, making it liable under labor law for the working conditions of those hired by a franchisee or provided by a staffing agency. He said the rule, which was to go into effect Monday, was too broad. The decision by Judge Barker, a nominee of former President Donald J. Trump, keeps in place a more business-friendly standard for assigning legal liability. Unions and employees support the rule because it makes it easier to bargain for better conditions, while franchisers say it would disrupt their business model.