The Good, the Bad, and the Ugly: Franchising Has a Joint Employment and Independent Contracting Problem, 20 NYU J Law & Business 367-454 (2024)

Abstract

Legal turmoil originating from the ambiguity of independent contractor and joint employment law has been exacerbated by the COVID-19 pandemic and the growth of e-commerce and the gig economy. Chaos and uncertainty have hindered business advancement, especially for franchises. Still, there are exemplary international approaches, proposed U.S. and state laws, uniform tests or guarantees, and fresh methodologies as well as legal presumptions. By narrowing the definition of "independent contractor" and expanding the definition of "joint employer," evolving legal interpretations will foster, inter alia, franchisee collective bargaining and other avenues toward fair and efficient compromise. Greater legal clarity could stimulate business growth and lead to stronger, fairer franchise systems.

Keywords: K00, k12, k20, k29, k19, k22, k33, k40, k49