SimplyHR | Employment & Labor Blog 

In a decision that could have far-reaching legal implications for franchisors, on July 29, 2014, the General Counsel of the National Labor Relations Board (“NLRB”) ruled that McDonald’s was a joint employer of its franchisees’ employees. This decision stems from allegations that McDonald’s and its franchisees violated employees’ rights following protests pertaining to wages and working conditions.

In Burwell v. Hobby Lobby Stores, Inc., the Supreme Court struck down the contraceptive mandate as applied to certain for-profit employers.

The Patient Protection and Affordable Care Act and its regulations require group health plans to cover women’s preventive care without any cost sharing requirements. The Health and Human Services department issued guidelines that included all Food and Drug Administration approved contraceptive methods within the definition of preventive services.

In the two cases consolidated in the decision, the plaintiffs were closely held corporations – Hobby Lobby Stores, Inc., Mardel, and Conestoga Wood Specialties Corp. – and the Christian families that owned them. The plaintiffs objected to four types of contraceptive methods, which they considered abortifacients.