Executive Summary The California Assembly Labor and Employment Committee passed AB5 along party lines. The bill now moves to the Assembly’s Appropriations Committee for consideration. Analysis On April 30, 2019, California Assembly Labor and Employment Committee passed AB5 as amended on March 26, 2019. Votes were as follows: Ayes Wendy Carillo (D) – 52nd Assembly District Lorena Gonzalez (D) – […]
Executive Summary The Department of Labor (“DOL”) submitted a notice of proposed rulemaking that would rollback the determination of joint employer status under the Fair Labor Standards Act (“FLSA”) to pre-Obama standards. In doing so, the DOL specifically recognized and addressed concerns raised by the franchise industry. Analysis On April 1, 2019, the DOL submitted a notice of proposed rulemaking […]
Executive SummaryAssembly Bill AB5 has been amended to include carve outs for certain industries from the Dynamex “ABC” test and reversion back to the Borello test for those industries. AnalysisOn March 26, 2019, AB5 was amended to explicitly include the “ABC” test and preclude the application of the “ABC” test to certain industries. Those industries include the following: (1) A […]
Executive Summary: In an unreported decision, Judge Carter of the United States District Court for the Central District of California denied Plaintiff’s Motion to Strike and granted in part Plaintiff’s Motion to Dismiss certain counterclaims against it. While not entirely novel, the critical lessons from the case include just how long a State enforcement action against a franchisor can be used […]
Executive Summary “On review from a decision by the Acting Regional Director, the National Labor Relations Board issued an order that considered whether franchisees who operated shared-ride vans for SuperShuttle were employees covered under the National Labor Relations Act. Overruling precedent set by the Board in a case involving FedEx in 2014, the Board found that the shared ride drivers were independent […]
Executive Summary The California Assembly has introduced a bill to “codify” the “ABC” test recently established in the case of Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903 and “clarify its application.” Analysis On December 3, 2018, Democratic Assembly Member Gonzalez introduced the outline of a bill that would codify and clarify the California Supreme Court’s […]