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October 4, 2019
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Salazar v. McDonald’s Corp.
(No. 17-15673, Oct. 1, 2019) __ F.3d __ [2019 WL 4782760]
Employees of a McDonald’s franchisee brought a wage and hour class action claiming that McDonald’s Corporation was their employer under a joint employment theory. Plaintiffs alleged the settings on McDonalds’ in-store timekeeping system, which the franchisee voluntarily used, did not recognize overtime hours or missed rest breaks and caused workers to take delayed meal periods. The district court granted summary judgment for McDonald’s.
The Ninth Circuit affirmed, holding that McDonald’s is not a joint employer of its franchisees’ employees under any of the three definitions of an “employer” recognized under California wage and hour law. Although McDonald’s imposes some requirements on its franchisees’ employees to ensure quality control and maintain brand standards, these requirements are essential to modern franchising and differ from exercising control over wages, hours, or working conditions (the “control” definition) or the manner and means of the work performed (the common law definition), as well as from suffering or permitting work (i.e., failing to prevent work from being done when one has the power to do so).
(No. 17-15673, Oct. 1, 2019) __ F.3d __ [2019 WL 4782760]
Employees of a McDonald’s franchisee brought a wage and hour class action claiming that McDonald’s Corporation was their employer under a joint employment theory. Plaintiffs alleged the settings on McDonalds’ in-store timekeeping system, which the franchisee voluntarily used, did not recognize overtime hours or missed rest breaks and caused workers to take delayed meal periods. The district court granted summary judgment for McDonald’s.
The Ninth Circuit affirmed, holding that McDonald’s is not a joint employer of its franchisees’ employees under any of the three definitions of an “employer” recognized under California wage and hour law. Although McDonald’s imposes some requirements on its franchisees’ employees to ensure quality control and maintain brand standards, these requirements are essential to modern franchising and differ from exercising control over wages, hours, or working conditions (the “control” definition) or the manner and means of the work performed (the common law definition), as well as from suffering or permitting work (i.e., failing to prevent work from being done when one has the power to do so).
