Franchise Focus

California Senate Amends AB5 to Take Certain Industries Off The Hook Of The Dynamex “ABC” Test

Aug 30, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor

Executive Summary The California Senate has amended AB5. Certain non-franchise industries have been taken out of the bill’s exemptions while commercial fishing and professional services have been included. Still, no direct franchising at large amendment has been included. Analysis On August 30, 2019, the California Senate amended AB5. Unlike past amendments, the Senate’s Amendment takes out certain explicit industry exemptions […]

California Senate Appropriations Committee Passes AB5, Again, Along Party Lines

Aug 30, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor

Executive Summary The California Senate Appropriations Committee passed AB5 on party lines. The bill now moves to the Senate at-large for consideration. Analysis On August 30, 2019, the California Senate Appropriations Committee passed after earlier amendment. Votes were as follows: Ayes Steven Bradford (D) – 35th Senate District Maria Elena Durazo (D) – 24th Senate District Gerald Hill (D) – […]

Salazar v. McDonald’s Corp: A Much Needed Win for the Franchise Industry

Aug 5, 2019Legal AlertsCalifornia, Employment Law, Joint Employer

Executive Summary: In a reported decision, United States Court of Appeals, Ninth Circuit, held that McDonald’s corporate was not a joint employer and could not be held liable under ostensible-agency theory. This was a significant victory for the franchise industry given recent events. Citation: Salazar v. McDonald’s Corp., 944 F.3d 1024 (9th Cir. 2019). Relevant Background: The Haynes Family Limited Partnership […]

AB5 Amendments Adds Industry Carve-Outs and Shifting Criteria for Independent Contractor Classification

Jul 11, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor

Executive Summary The California Senate has amended AB5 rolling back some previous amendments related to certain industries such as hairstyling and adding in new industries that would be carved out from the Dynamex “ABC” test. No direct franchising at large amendment has been included yet. Analysis On July 11, 2019, the California Senate Committee on Labor, Public Employment and Retirement amended AB5. […]

California Senate Labor, Public Employment and Retirement Committee Passes AB5 Without Amendment

Jul 10, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor

Executive Summary The California Senate Labor, Public Employment and Retirement passed AB5 along party lines. The bill now moves to the Senate’s Appropriations Committee for consideration. Analysis On July 10, 2019, California Senate Labor, Public Employment and Retirement Committee passed AB5 without amendment. Votes were as follows: Ayes Gerald Hill (D) – 19th Senate District Hannah-Beth Jackson (D) – 19th […]

Campbell v. FAF, Inc. et al.: A Costly Lesson Related To Notice Pleading The Existence of a Franchise

Jun 20, 2019Legal AlertsCalifornia, CFIL

Executive Summary: In an unreported decision, Judge Hayes of the United States District Court for the Southern District of California decided a Motion to Transfer that defendants’ filed based on a forum selection clause in an “Independent Contractor Operating Agreement” (“Agreement”). Plaintiff argued enforcement of the forum selection clause violated public policy–as codified by the California Franchise Investment Law (“CFIL”). Defendants […]

California Assembly Passes AB5

May 29, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor

Executive Summary The California Assembly passed AB5. The bill now moves to the Senate for consideration. Analysis On May 29, 2019, the California Assembly passed AB5 as amended on May 24, 2019. Votes for AB5 broke down along partisan lines with 59 ayes, 15 noes, and 6 no votes recorded.The bill will now move to the California Senate for consideration, […]

California Assembly Amendment Restyles AB5, but Narrowly Misses Franchise Exemption in Trimming the “ABC” Test

May 24, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor

Executive Summary The California Assembly has amended AB5 significantly and added several industry carve outs to the Dynamex “ABC” test, but it did not make any changes that directly relate to the franchise industry. Analysis On May 24, 2019, the California Assembly amended AB5 significantly, carving out more industries and professions from the Dynamex “ABC” test and stating explicitly that the Borello test–either as is or […]

California Assembly Appropriations Committee Passes AB5

May 16, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor

Executive Summary The California Assembly Appropriations Committee passed AB5 along party lines. The bill now moves to the Assembly at large for consideration. Analysis On May 16, 2019, California Assembly Appropriations Committee passed the AB5 as amended on May 1, 2019. Votes were as follows: Ayes Richard Bloom (D) – 50th Assembly District Rob Bonta (D) – 18th Assembly District […]

California Assembly Appropriations Committee Makes Minor Changes to AB5 Related to Unemployment Insurance

May 1, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor

Executive Summary Assembly Bill AB5 has been amended again, this time to include appropriations specific language. Analysis On May 1, 2019, Assembly Bill AB5 was amended to include certain appropriations related changes. More specifically, the bill now includes specific references to unemployment insurance provisions. As an example: Existing law, for purposes of unemployment insurance provisions, requires employers to make contributions […]