Category Archives: Franchisee

NLRB Reinstates Prior Joint-Employer Standard

On December 14, 2017, in a 3-2 decision, that could allay fears of franchisors being joint employers of their franchisees, the National Labor Relations Board overruled the Board’s 2015 decision in Browning-Ferris Industries, 362 NLRB No. 186 (2015) (“Browning-Ferris”), and returned to … Continue reading

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New Illinois Law Renders Non-Compete Agreements for Low-Wage Employees “Illegal and Void”

On August 19, 2016, Governor Bruce Rauner signed into law the Illinois Freedom to Work Act (the “Act”).  The Act prohibits certain Illinois employers from entering into non-compete agreements with low-wage employees.  The law takes effect January 1, 2017. The … Continue reading

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Restaurant Owners: Are You Taking Advantage of All Tax Credits and Deductions?

Restaurant owners can take advantage of many special deductions and credits providing substantial tax savings. Here are several to explore: Tax Credits for Hiring in Empowerment Zones.  Tax credits are available for hiring employees who live and work in an … Continue reading

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Defend Trade Secrets Act Creates Federal Jurisdiction Over Misappropriation Claims

Congress recently passed the Defend Trade Secrets Act (“DTSA”), vesting federal courts with the power to hear trade secret theft disputes and act immediately to resolve them. The DTSA took effect May 12, 2016, and further empowers American innovators to … Continue reading

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New Federal Overtime Rule Takes Effect December 1, 2016

The U.S. Department of Labor recently finalized a rule (the “Final Rule”) to update the federal white collar overtime exemptions.  The Final Rule, which takes effect on December 1, 2016, doubles the salary threshold—from $23,660 to $47,476 per year, or … Continue reading

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Update: Avoiding The Franchisor Joint Employer Trap

It’s an unsettling time for franchisors.  The NLRB’s new “indirect control” standard for finding a joint employer relationship (discussed here) is ambiguous and leaves many franchisors confused about how to protect their brand without becoming a joint employer with their … Continue reading

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Your Managers May Not Be Exempt Under the DOL’s Proposed Overtime Rules

Business owners and franchisees, you might need to start paying your managers overtime.  The Department of Labor (DOL) is updating the overtime rules for the so-called “white collar” exemption that excludes certain executive, administrative, and professional employees from the FLSA … Continue reading

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Limiting Employee Hours to Avoid the Affordable Care Act May Violate ERISA

Under the Affordable Care Act (ACA), employers with 50 full-time equivalent employees (those working 30+ hours per week) must offer at least minimal healthcare to employees and their dependents.  Employers, including many franchised businesses, may attempt to avoid this requirement … Continue reading

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Choice of Entity: LLC or S Corporation?

Choosing the right business structure makes a big difference for your business.  Most of today’s small business and franchise owners opt for one of two structures, the limited liability company (LLC) or the S corporation (S corp.).  While these business … Continue reading

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U.S. Attorney’s Office to Review City and Suburban Restaurants for Compliance with Americans with Disabilities Act

The United States Attorney’s office for the Northern District of Illinois recently announced it is reviewing restaurants in Chicago and the suburbs to ensure the facilities comply with the Americans with Disabilities Act (ADA).  Public accommodations such as restaurants must … Continue reading

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