What is the Degree Wellness Group required to do regarding the hours worked by Placed Employees?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness Group has specific obligations regarding the hours worked by Placed Employees. Degree Wellness Group must not allow Placed Employees to work more hours than what is reported to the Staffer (the entity employing the placed employees) for payment purposes. Additionally, Degree Wellness Group is obligated to ensure that Placed Employees receive all legally mandated rest and meal periods.

This requirement ensures that Degree Wellness complies with labor laws and protects the well-being of the Placed Employees. It also clarifies the division of responsibilities between Degree Wellness and the Staffer, with the Staffer primarily responsible for employment matters such as wages, benefits, and taxes. Degree Wellness's role is limited to ensuring that the hours worked are accurately reported and that legally required breaks are provided.

For a prospective franchisee, this means understanding and adhering to these limitations on Placed Employees' working hours is crucial. Failure to comply could result in legal repercussions for Degree Wellness. The franchisee should maintain accurate records of hours worked and breaks taken by Placed Employees to ensure compliance. This also highlights the importance of a strong working relationship between Degree Wellness and the Staffer to effectively manage and oversee the Placed Employees.

This arrangement is fairly typical in franchise systems where outsourced labor is used. The brand wants to ensure compliance with labor laws without directly employing all the workers. The franchisee must carefully manage the placed employees to stay within the legal requirements.