Gaston: Out of Joint: Texas Joint Employer Liability for Franchisors

In response to the NLRB’s pronouncement of joint employer status between two distinct business entities in Browning-Ferris Industries, a handful of state legislatures, including Texas, have passed legislation to protect the franchise industry from exposure to lawsuits for franchisees’ labor and employment law violations. Other states that have passed similar legislation include Louisiana, Tennessee, Wisconsin, Michigan and Utah. In August 2015, the NLRB issued a decision in Browning-Ferris Industries vastly expanding its joint employer standard. The decision re...