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Court: McDonald’s not liable for franchisee’s alleged labor violations

The Ninth Circuit Court of Appeals held McDonald’s Corp. didn’t exercise enough control over a Bay Area franchisee’s workforce to be liable for alleged violations of California wage law, Restaurant Business reported [1].

The three-judge panel held that McDonald’s did not control the wages, hours or working conditions of the franchisee’s employees. And while there was “evidence suggesting that McDonald’s was aware” of labor law violations, “there was no evidence that McDonald’s had the requisite level of control” over the workers’ employment “to render it a joint employer,” the article noted.

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