Executive Summary
The California Assembly has voted in concurrence with the Senate Amendments of AB5 and has sent the bill to Governor Newsom’s desk for signature or veto. Governor Newsom has publicly expressed support for the bill.
Analysis
On September 11, 2019, the California Assembly denied a procedural vote supported by Republicans in the Chamber (16 Ayes, 53 Noes, 10 NVR) and then voted along party lines to pass the legislation (61 Ayes, 16 Noes, 2 NVR) and send it to Governor Newsom for signature or veto by October 13, 2019.
Looking Forward
Governor Newsom expressed support for AB5 in an OpEd in the Sacramento Bee on Labor Day of this year. Thus, in spite of AB5’s many, many flaws–as it relates to the franchise industry and several other legal questions that could have been easily answered by amendment–the law is likely to be signed into law shortly. When that occurs, we will provide a comprehensive analysis of the final bill.
This article was originally published on the California Franchise Network.
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Thomas O’Connell – Tom O’Connell is a Shareholder at Buchalter APC, where he serves as Chair of the firm’s Franchise Law Practice and Chair of Litigation for the firm’s San Diego office.
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