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Should the franchisers be held liable as joint employers

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Question - Domino's Pizza franchises in New York were sued by the state of New York in 2016 for wage theft at 10 stores. Under New York law, a corporation and a franchiser are joint employers if they meet certain criteria regarding employee control. The state found that Domino's met the criteria for being a joint employer because it mandates a significant number of policies with which franchisers must comply. The problem arose when Domino's mandated the use of PULSE payroll software, which the pizza company knew to be flawed and did not attempt to remedy. The flawed software led to employees being paid at rates below the legal minimum wage, failed to pay overtime, did not reimburse employees for vehicle use, and abused tip credit guidelines. Should the franchisers be held liable as joint employers with Domino's? Why or why not?

Reference no: EM133106363

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