Worker Classification Comes Under DOL's Scrutiny

While the debate rages over the fallout from the Obama Administration's decision to revise overtime rules for the first time in almost a decade and a half, other threats to the franchising model continue lurking about as well. For example, my colleague Liz Sigety has been closely following legislative efforts to blunt the impact of any changes in the joint employer doctrine.

The Wall Street Journal today reports today about another growing challenge to the franchise model, under the curious headline–for a generally pro-business publication–of "Bosses Reclassify Workers to Cut Costs." We all know about the myriad challenges franchisors have faced from lawsuits in many states where franchisees claim that they really are employees. It is an old issue about which we have written before.