These days, even experienced franchise owners can be overwhelmed by human resource demands and compliance challenges. In a new report, XpertHR identified the 10 most common HR dilemmas faced by franchises and offered guidance on how to address them. The white paper can help franchises - franchisors and franchisees alike - deal with issues such as joint employer liability, employee leave, reasonable accommodation requests, paid sick leave, employee classification, overtime requirements, finding and hiring the right employees, onboarding and training, protected activity, and more.
While all franchises face similar issues, smaller franchisees, typically focused on running their business and putting out fires, generally focus on day-to-day employment challenges and struggle to stay current with legal and workplace trends. Many don't have an HR function but are still responsible for ensuring employment law compliance. Some might even be tempted to let employment issues slide, which can lead to significant legal problems and related costs.
"Franchise owners, both small and large, should have a thorough understanding of federal, state, and municipal employment laws, anticipate changes and proactively manage their workforce to reduce the potential for employer liability," says Tracy Morley, legal editor at XpertHR.
Franchisors know that franchisees are independent business owners responsible for the business decisions they make. And while the overwhelming risk is primarily to franchisors if they are held accountable for the mistakes of their franchise owners, franchisees will feel the effects as well, since damage to a franchisor's brand could negatively affect a franchisee. In an effort to preserve the franchisor-franchisee relationship, franchise owners must ensure that customers and employees alike understand that the franchisor is not the employer.
XpertHR's top employee management and HR compliance issues for franchises are:
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