: Why McDonald’s, Google and other big businesses may face responsibility for many more workers

by | Sep 19, 2022 | Stock Market

When a McDonald’s worker has a beef with their boss, complaining to McDonald’s Corp. won’t help. When an employee at Google has a problem, they likely can’t seek out a Google manager — their manager usually works for a vendor hired by the tech giant. Large American companies have used the franchise model, like at McDonald’s
MCD,
+0.57%,
or hired large amounts of independent contractors, a favorite of big tech, in part to avoid responsibility and liability for the workers who contribute to their businesses. The Biden administration is now seeking to replace Trump-era regulations, a move that could strike at the ways companies evade accountability for labor violations and keep workers from organizing.

The National Labor Relations Board issued a notice of proposed rule-making earlier this month, saying it aims to provide a clear joint-employer standard that would expand to include companies that don’t have direct control over all aspects of an employee’s working conditions, “so long as those forms of control bear on employees’ essential terms and conditions of employment.” The rule could take effect next year. In changing the standard by which companies would be considered “joint employers” that deal with direct as well as indirect employees, the proposed regulations could affect large companies …

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