Independent franchise owners need to watch for the court decision on this as it could have wide spread implications. As explained in this article published yesterday by SHRM, 15 Employees filed sexual harassment claims in which McDonalds Corp. was named a co-employer. Needless to say, the outcome of this will have a serious impact on the franchiser/franchisee relationship, and how business agreements are set up moving forward. Not just for McDonalds and the restaurant industry, but all franchise relationships. That being said, whether or not the franchiser (McDonalds in this case) is found to be held liable as a co-employer, this does not relive the independent franchisees of their responsibility to conduct a prompt and impartial investigation into these complaints. Investigating complaints is not just the law, it is the right thing to do. Failing to investigate is costly. Taking retaliatory action may entitle the victim to punitive damages, at the discretion of a jury. This is where the high dollar settlements come into play. This is easy to prevent folks. Complaint = Investigation. Every time!
Not sure how to conduct a proper investigation, check out www.investipro.com.