In an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees were not jointly employed by McDonald’s Corp. and thus the franchisor, McDonald’s Corp., was not liable to the employees under California
We’ve posted on this topic several times before but the battle between independent contractors and employees continues.
Here’s a brief refresher on the basics of why proper classification of employees as independent contractors or employees matters:
- Employees (not independent contractors) are entitled to workers’ compensation and unemployment benefits.
- Employees (not independent contractors) have taxes withheld
Can your consultant-consultee relationship with an employer who allegedly violates the Worker Adjustment and Retraining Notification (WARN) Act subject you to liability as well? Not according to the U.S. Court of Appeals for the Sixth Circuit. In McKinney v. Carlton Manor Nursing and Rehabilitation Center, Inc., former nursing home employees sued Carlton Manor and…