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McDonald’s could be liable for labor practices

By From page B8 | July 30, 2014

NEW YORK  — McDonald’s is coming under intensifying pressure for labor practices at its U.S. restaurants.

The National Labor Relations Board said Tuesday that the world’s biggest hamburger chain could be named as a joint employer in several complaints regarding worker rights at franchise-owned restaurants. The decision is pivotal because it could expose McDonald’s Corp. to liability for management practices in those locations.

It also comes as protests for higher pay have captured national attention, with labor groups calling for pay of $15 an hour and the right to unionize. Organizers had been pushing to get McDonald’s named as a joint employer at franchised restaurants, a move intended to give them a centralized and powerful target.

In the U.S., the vast majority of McDonald’s more than 14,000 restaurants are owned and operated by franchisees. The same is true for many other fast-food chains, including Burger King and Yum Brands, which owns Taco Bell, KFC and Pizza hut. As such, the companies have sought to distance themselves from the pay protests by saying they don’t determine wages at its franchised locations.

 

The Associated Press

The Associated Press

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