News & Events

Hotel Franchisor May Be Considered Joint Employer

7.15.19

In the midst of the Department of Labor’s proposed update to the joint employer rule, a federal district court in Pennsylvania found that a housekeeper sufficiently alleged a cause of action for overtime violations against a hotel franchisor, as well as the operating franchisee.

In denying the hotel franchisor’s motion to dismiss, the Court said that, despite a franchise agreement that specifically stated that the franchisee is responsible for personnel issues, the franchisor could not rely solely on the agreement to demonstrate that no joint employer relationship existed. The Court also considered the employee’s allegations that the hotel franchisor: exercised significant control over the franchisee’s operations; maintained financial data on the franchise; performed quality assurance visits; licensed required software; mandated owner and manager training for all departments; and had extensive control over the terms and conditions of her employment. Thus, the housekeeper satisfied the pleading requirements for alleging joint employer status and her cause of action could proceed against the hotel franchisor.

Danielle Jenkins is an attorney in the Firm’s Franchise Law & Business Litigation Practice Groups. If you have any questions or concerns about this issue or any other matter, please contact Danielle directly at 813-223-1099.
Related Attorney
Danielle Jenkins

Related Practices
Business Litigation
Franchise Law

Related Attorney

Danielle Jenkins

Related Practices

Business Litigation
Franchise Law

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