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5 Ways Trump Administration Might Impact Restaurant Labor

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by Dana A. Kravetz
Restaurant Hospitality
November 22, 2016

Dana Kravetz's article, "5 Ways Trump Administration Might Impact Restaurant Labor," was published in Restaurant Hospitality on November 22, 2016.

From the article...

"Recent rulings by the National Labor Relations Board (NLRB) have jarred the hospitality industry by lowering the bar for establishing joint-employer liability. Two of the NLRB’s five slots are vacant and another member's five-year term will expire next December. Mr. Trump will almost certainly fill the two immediate vacancies on the NLRB with Republicans, thus shifting majority control of the agency very early in his presidency.

The NLRB’s decision in the Browning-Ferris Industries (BFI) case (currently on appeal) could create myriad issues in the restaurant industry, including conflict between franchisors and franchisees over who is liable when lawsuits arise, as well as increased liability when working with contractors. Under the new joint employer standard, a finding of joint employment is much broader and only requires that a business exercise “indirect” (or potential) control over workers. Hence, under the new test, a company may not only be held liable for its own labor violations, but also for those of another entity. This affects all companies that outsource any aspect of their business, including contractors, suppliers or even outsourced cleaning or IT work."

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