The National Labor Relations Board said on July 29 that McDonald’s could be held jointly liable for labor and wage violations perpetrated by its franchise operators in a ruling that could upend fast food labor practices and give a dramatic boost to ongoing unionization efforts.

The board’s decision hinged on whether McDonald’s is a “joint employer” of workers at its franchises.

Although McDonald’s insists that it has no hand in hiring, wages or other employment matters at the restaurants, the board sided with workers who said in complaints against the company that it exerts tremendous control over how those restaurants are run and therefore should be considered a joint employer.

McDonald’s regularly sends representatives to check up on franchise operators and controls what menus, supplies, uniforms and training materials they use, workers said. According to the Service Employees International Union, which is backing the workers, the company also supplies many operators with software to measure productivity and labor costs.

“Employers like McDonald’s seek to avoid recognizing the rights of their employees by claiming that they are not really their employer,” University of Texas labor law professor Julius Getman told The New York Times. “McDonald’s should no longer be able to hide behind its franchises.”

The New York Times, July 29