On Tuesday evening, the federal government dealt a huge blow to McDonald’s, which has for over a year and a half been the target of worker protests and lawsuits over its low wages and questionable labor practices.
McDonald’s has long maintained that as a parent company, it cannot be held liable for the decisions individual franchises make about pay and working conditions. On Tuesday, the general counsel at the National Labor Relations Board (NLRB) ruled that this is nonsense, saying that the $5.6 billion company is indeed responsible for employment practices at its local franchises. That means that the company is no longer shielded from dozes of charges pending at regional NLRB offices around the country alleging illegal employment practices.
"McDonald’s can try to hide behind its franchisees, but today’s determination by the NLRB shows there's no two ways about it," Micah Wissinger, an attorney who brought a case on behalf of New York City McDonald's workers said in a statement Tuesday. "The Golden Arches is an employer, plain and simple."
The Fast-Food Workers Committee along with the Service Employees International Union has filed numerous complaints against the company with the NLRB since November 2012. Most recently, workers filed seven class action lawsuits against McDonald’s corporate and its franchises in three states alleging wage theft. The NLRB consolidated all these complaints into the case it decided on Tuesday, which focused on whether McDonald's corporate can be considered as a "joint employer" along with the owner of the franchise.
Since the fall of 2012, fast-food workers at McDonald's, Burger King, and KFC franchises around the country have been striking to demand a $15 minimum wage and the right to form a union without retaliation. The strikes recently went global. Organizers say Tuesday's ruling will lend workers new momentum in their ongoing battle against the fast-food mega-chain.