As noted in a recent article on this website, a National Labor Relations Board decision that expands the definition of "employer" is expected to have a big impact on small businesses that make their livings as contractors, subcontractors, or employment agencies for commercial customers.

Another result of the NLRB decision is that franchisors and franchisees are among the business relationships that will also be affected by the ruling. The NLRB ruling comes one month after an earlier NLRB ruling stating that franchisors, such as McDonald's Corporation, are now considered "joint employers."

In a recent press release, Steve Caldeira, president and CEO of the International Franchise Association, noted, "The NLRB's recommendation that franchisors and their franchisees be designated as joint employers is both wrong and unjustified. Millions of jobs and the livelihoods of hundreds of thousands of independent franchise small businesses are now at risk due to the radical and unprecedented nature of this decision. Ruling that franchises are joint employers will be a devastating blow to franchise businesses and the franchise model."