We need clarity to improve Kentucky’s current business climate. Legal rulings have made the issue of interpreting joint responsibility for an employee by corporate franchisors and local franchisees confusing. Congress has an opportunity to fix the National Labor Relations Board (NLRB) rule in its upcoming lame duck session and thus improve the economy.
The rule, which defines the legal relationship between franchisors (the corporate brand) and franchisees (think your local Papa John’s or KFC) that are considered jointly responsible for the same employee, is critically important to the world-renowned franchise businesses headquartered in our state.
The current interpretation of this rule is an overly-broad definition that has undermined decades of conventional legal wisdom and risked jeopardizing the relationships between franchisors and franchisees. It exposes franchisors to a greater legal burden. The fight around that definition has been going on for years, saddling businesses affected by the ruling with uncertainty and negatively impacting their bottom lines, and in-turn, our economy.