25 Sep California Supreme Court Rules in Favor of Franchisor in Joint Employer Ruling
As franchisor employer issues continues to arise, the California Supreme Court recently ruled that holding a franchisor liable as an employer depends on the level of control over day-to-day employment decisions. Law firm Ogletree Deakins reports that: In Patterson v. Domino’s Pizza, LLC, the California Supreme Court issued a decision holding that a franchisor that did not exhibit the characteristics of an “employer” was not vicariously liable for the wrongful conduct that one franchisee employee directed toward another franchisee employee.
The state high court held that Domino’s Pizza, LLC, the franchisor, did not have the right or duty to control the employment of the franchisee’s employees or the franchisee’s personnel matters and was not involved in the franchisee’s day-to-day decisions involving the hiring, supervision, and discipline of the franchisee’s employees. Thus, the court found that the franchisor cannot be held liable for the conduct of an employee of the franchisee.