Domino’s Harassment Case Could Put Franchisors On Hot Seat

October 11, 2012 – In The News

In taking up a sexual harassment case against Domino's Pizza LLC, the California Supreme Court is set to consider whether a parent company can be held liable for a franchisee's alleged employment law violations, and a ruling against Domino's could lead to more litigation against big-name franchisors.

Jeffrey Polsky, Fox Rothschild LLP employment partner, was featured in the article commenting on the ruling against Domino’s. Polksy argued that if the California Supreme Court upholds the ruling against Domino’s, it would mean franchisors not only have to worry about their own employees, but also about their franchises’ employees.

Polsky believes that franchisers would face greater potential liability because they could be on the hook for any claims of sexual harassment, discrimination, wrongful termination or wage-and-hour violations by their franchisee, should the ruling uphold.