Franchisor Not Liable for Uninsured Franchisee's Injured Employee

The Commonwealth Court of Pennsylvania last week ruled that a restaurant franchisor was not liable for the benefits owed to an uninsured franchisee's injured employee. Liability instead fell on the state's Uninsured Employers Guaranty Fund, the unanimous panel said. The court's conclusion in Saladworks v. WCAB (Gaudioso) that a franchisor is not a joint employer of a franchisee's employees is consistent with the position taken by many states, including Kentucky, Texas, Louisiana, Tennessee, Delaware, Oklahoma and Georgia. However, the positions espoused by these states &...