How Franchise Systems Can Minimize Labor Violation Risks

Law360, New York (September 27, 2013, 3:57 PM EDT) -- No one enjoys being the center of attention when that attention is coming from federal regulators. Yet that’s where franchise systems have found themselves of late — especially in the hospitality sector, which accounts for roughly one-third of franchise systems.

The Wage and Hour Division of the U.S. Department of Labor has focused increasingly on hospitality-related businesses such as restaurants and hotels, looking specifically for violations of the Fair Labor Standards Act.

The DOL typically gives employers advance notice before conducting investigations. But as part of...
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