Corporate owners of fast-food restaurants have typically been off the hook for labor violations at their franchised outlets. Workers have had to seek redress from the franchisees who own their individual restaurants. Those franchisees are the direct employers of many of the nation’s more than 3.3 million fast-food workers, an arrangement that shields the multibillion dollar parent corporations from liability. A first-of-its-kind bill in the California Legislature would hold all corporate chains legally responsible, jointly with franchisees, for labor violations at their outlets, if those violations are not soon corrected.
The California Chamber of Commerce has joined the fast food industry in a lobbying campaign against the bill, which they warn will upend the franchising business model. That model has allowed global companies to access capital from a broad cross section of entrepreneurs while insulating themselves from labor issues, as well as other risks associated with operating a brick and mortar business.
Wage theft is prevalent in fast-food restaurants, according to surveys of workers in the industry. Nearly 85% of California’s fast food workers say they have experienced wage theft, including working without pay, being paid below minimum wage, or being denied meal and rest breaks or sick leave, according to a study published by the Service...
A jury found Emadeldin Ibrahim liable for $188,350 in false meal reimbursement claims, with damages to be tripled. A St. Paul jury has found Emadeldin Ibrahim liable for violating the Minnesota Fal...