A federal court recently denied a franchisor's motion to dismiss a workplace-abuse lawsuit filed by its franchisee's employee because the employee stated...
A federal court recently denied a franchisor's motion to dismiss a workplace-abuse lawsuit filed by its franchisee's employee because the employee stated a claim upon which relief could be granted under Federal Rule of Civil Procedure Rule 12.
In C.S. v. Subway Worldwide, Inc. et al., C.S. worked at a Subway restaurant in Jamestown, North Dakota. While working at the Jamestown Subway as a minor, C.S. was repeatedly drugged and sexually assaulted by her supervisor, a convicted child sex offender. C.S. brought a civil suit in federal court against the franchisee and four franchisor-related entities (collectively, “Subway Worldwide”), for the abuse. C.S. alleged two theories of liability against Subway Worldwide: agency, or alternatively, joint employment.
Subway Worldwide moved to dismiss all eight of C.S.'s claims arguing the complaint contained no factual allegations establishing agency or joint employment. The franchise agreement also contained a disclaimer of agency.
C.S.'s complaint, however, alleged that Subway Worldwide operated, directed, and controlled the franchisee. Specifically, Subway Worldwide's human resources consultants were involved with the employment practices, policies, and procedures for the store. Additionally, C.S. believed she was employed by Subway Worldwide.
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