If a franchisor is acting as a joint employer, they are liable for accidents caused by employees.
When seeking compensation for an accident caused by the employee of a franchise, untangling issues of liability can be a bit of a challenge. Employers are generally held strictly liable for the negligent actions of their employees, but in the case of a franchise business we must ask, who is the employer? The franchisee (the owner of the specific local business), the franchisor (the owner of the entire franchise), or both jointly?
Case law provides some insight into this question.
Wiederhold v Domino’s Pizza 2-11-CA-001589
This case involved a car accident caused by an employee of a local Domino’s Pizza. While out on a delivery, the employee drove in front of an oncoming vehicle, causing the driver to crash into a median. This man suffered serious injuries that left him quadriplegic and later died of his injuries.
When the man’s family brought a wrongful death lawsuit, they targeted the main brand, Dominos’ Pizza, rather than just the local franchisee. Attorneys for Domino’s Pizza argued that the brand was not the driver’s employer because they had no control over the hiring and firing of the franchisees’ employees. Attorneys for the plaintiff argued that Domino’s Pizza did have the responsibility of an employer because of the way the brand dictated specific conduct for franchisees’ delivery drivers. For example, the brand has policies that require drivers to never carry more than $20 cash and not use radar detectors. The attorneys argued that with this level of oversight, the individual Domino’s Pizza locations were not really “independent contractors” but agents of the main brand. This made them jointly liable for the delivery driver’s actions.
The jury agreed, finding Domino’s Pizza liable for the car accident and awarding $10.1 million to the victim’s family in April.
Signs of a Joint Employer Relationship
In other cases, courts have not found franchisors liable for franchisees’ employees’ actions. While case law here is still evolving and juries can be unpredictable, in general it seems that if a franchisor participates closely in conditions of employment, they can be considered a joint employer. Possible examples of close participation include directly hiring or firing a franchisee’s employees, supervising or disciplining them, training them, or providing their equipment or uniform.
Have You Been Injured by a Delivery Driver?
If you have been injured due to the negligence of a delivery driver or other employee, it is very important to correctly identify and target their employer. Attorney Vargas can help. Call our office at 909-982-0707 for a free consultation if you have any questions about your accident.
