PA Supreme Court to Decide if Franchisors can be Employers of their Franchisee’s Employees under Workers’ Compensation Statute

PA Supreme Court to Decide if Franchisors can be Employers of their Franchisee’s Employees under Workers’ Compensation Statute

Yesterday, the Pennsylvania Supreme Court agreed to rule on a seemingly narrow issue that threatens to send ripples across the entire franchise relationship. Specifically, following an appeal of the Commonwealth Court’s decision in Saladworks, LLC v. W.C.A.B. (Gaudioso),  the Court will decide whether a franchisor can ever be subject to liability as a statutory employer under Section 302(a) of the Pennsylvania Workers’ Compensation Act. This case involved the employee of

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