Jimmy John’s was able to escape a federal wage violation lawsuit last month freaky fast, in a suit that was a win for franchisors. The lawsuit alleged that Jimmy Johns was a joint employer of assistant mangers at Jimmy John’s franchises nationwide. The assistant managers also claimed they should not have been classified as overtime-exempt employees because they performed non-managerial tasks for much of their job.
The assistant managers’ argued that Jimmy John’s was a joint employer because it choreographed their daily activities through its operations manual, which in turn, franchisees were required to follow. Ultimately, however, Jimmy John’s argument that won its dismissal on summary judgment was that its enforcement of brand standards and periodic audits of franchisees was not enough to establish joint employment, especially when Jimmy John’s had no control over franchisees’ employment decisions. This case, currently under appeal, may provide a roadmap to franchisors like Jimmy John’s on how to avoid liability in wage violation suits in the future. If you have questions about labor and employment law, or even more specifically, joint employment or franchises, give the attorneys at Rock, Fusco, & Connelly a call.