Starbucks coffee illegally denied pay to union workers: NLRB | Fast Company

The National Labor Relations Board has sided with workers who claim Starbucks broke labor law by withholding wages and benefits from unionized stores—the latest blow to its handling of baristas’ intensifying union drive.

Over 230 locations have now joined Starbucks Workers United’s union, helping make the world’s most recognizable coffee brand the corporate face of America’s union boom. Both Starbucks and longtime CEO Howard Schultz have now spent months attempting to aggressively thwart these efforts.

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NLRB Federal Ruling on McDonald’s Just Turned Franchising Upside Down | Inc.com

mcdonalds_39120In a move that could ultimately have a huge impact on all franchising, the general counsel of the National Labor Relations Board has said that McDonald’s is the joint employer of workers at its franchise locations. If ultimately upheld, that could put McDonald’s at the epicenter of class action suits over fast food worker wages and working conditions.

Traditionally, franchise owners themselves were considered sole employers of their workers. Because they operated as separate legal entities, franchisors were isolated from any labor disputes. By declaring that McDonald’s is a joint employer, the NLRB has shaken that structure.

“Corporations that exercise sufficient control over their franchisees cannot claim ignorance,” said Catherine Ruckelshaus, general counsel and program director for the National Employment Law Project, in a Tuesday conference call held by the organizations supporting the lawsuits. “This accountability means ensuring that the franchises comply with the basics of the law.”

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