In a troubling development for franchisors, a Missouri federal district court has conditionally certified a class of plaintiffs in a collective action brought against Hotshots Sports Bar & Grill under the federal Fair Labor Standards Act (“FLSA”) and Missouri's wage and hour laws.
Franchised Employees Might Be Employees of Franchisor
In a troubling development for franchisors, a Missouri federal district court has conditionally certified a class of plaintiffs in a collective action brought against Hotshots Sports Bar & Grill under the federal Fair Labor Standards Act and Missouri's wage and hour laws. The ruling in <i>White v. 14051 Manchester, Inc.</i> is concerning because it holds, at least preliminarily, that employees of independently owned franchises may be considered employees of the franchisor under the FLSA, based on a common form of control exercised in most franchisor-franchisee relationships.
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Megan L. Anderson And Maisa Jean FrankThis premium content is locked for LawJournalNewsletters subscribers only
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