Executive Summary After AB257 failed to pass the Assembly last June, the Assembly amended AB257 and was able to pass the bill. Analysis AB257 has been reintroduced by Assembly Members Holden, Carrillo, Low, and Luz Rivas with Coauthors Assembly Members Mia Bonta, Gipson, Kalra, McCarty, Muratsuchi, and Santiago. Addressing concerns raised from the previous year that led to AB257 falling […]
Executive Summary: In an unpublished decision, Judge Fischer of the United States District Court for the Central District of California found in favor of 7-Eleven and against franchisees on the issue of whether 7-Eleven franchisees are employees. While the judge acknowledged the rationale of the District Court of Massachusetts in Patel v. 7-Eleven, Inc., he ultimately found that 7-Eleven does […]
Executive Summary After three readings, AB257 failed to pass the California Assembly. The bill may be reconsidered by the Assembly in January 2022. Analysis On June 3, 2021, the California Assembly considered AB257 and the bill failed to receive the 41 votes necessary to pass after three readings. Specifically, AB257 received 38 ayes, 27 noes, and 14 no votes recorded. […]
Executive Summary The California Assembly Committee on Appropriations passed AB257 as amended on April 28, 2021. The bill now moves to the full Assembly for consideration. Analysis On May 20, 2021, California Assembly Committee on Appropriations passed AB257 with 12 ayes and 4 noes. The bill will now move to the California Assembly for consideration. Looking Forward The primary jurisdiction […]
Executive Summary The California Assembly has made several small amendments to AB257. While most are not material, two would likely allow additional employment claims to proceed. Analysis On April 28, 2021, the Assembly amended AB257. While most amendments are technical terminology changes to the bill, two changes are substantive. Those are as follows: 1473. (a) A fast food restaurant franchisee […]
Executive Summary The California Assembly Committee on Judiciary passed AB257 without amendment five days after the California Assembly Committee on Labor and Employment. The bill now moves to the Assembly Committee on Appropriations for consideration. Analysis On April 27, 2021, California Assembly Committee on Judiciary passed AB257 with 7 ayes, 3 noes, and 1 NVR. The bill will now move […]
Executive Summary The California Assembly Committee on Labor and Employment passed AB257 along party lines. The bill now moves to the Assembly Committee on Judiciary for consideration. Analysis On April 22, 2021, California Assembly Committee on Labor and Employment passed AB257 BY A 5-2 vote along party lines. The bill will now move to the California Committee on Judiciary. Looking […]
Executive Summary The California Assembly has amended AB257 dramatically. While the amendments are numerous, the two most controversial would establish a new legislative body known as the Fast Food Sector Council that has the power to set rules and wages for fast food restaurants and codify franchisors and franchisees as joint employers. Analysis AB257 has been amended substantially. The Legislative […]
Executive Summary The California Assembly has introduced a bill that is meant to “safeguard” fast food industry workers who the assembly states have been mistreated, harassed, and discriminated against. The scope of the bill is not yet clear but is being heavily supported by California unions. Citation The FAST Recovery Act Analysis On January 15, 2021, Democratic Assembly Member Gonzalez–the […]
Executive Summary: In a published decision, Judge Gorton of United States District Court for the District of Massachusetts issued a decision finding that 7-Eleven franchisees claims that they were employees of 7-Eleven corporate pursuant to Massachusetts ABC Test was preempted by the Federal Trade Commission’s Franchise Rule and, therefore, the ABC Test was inapplicable to the franchise industry. Citation: Patel v. 7-Eleven, […]