Employment Law

A.B. v. Hilton Worldwide Holdings Inc.: A Must Read for Hotel Franchisors and Franchisees

Sep 8, 2020Legal Alerts9th Circuit, Employment Law, Independent Contractor, Joint Employer

Executive Summary: In a published decision, Judge Immergut of United States District Court for the District of Oregon granted several hotel franchisors’ motions to dismiss claims that they should be held liable for sex trafficking of a plaintiff that had stayed at their hotels in Oregon and Washington, but the decision’s analysis leaves open several critical questions. Citation: A.B. v. Hilton Worldwide Holdings Inc., […]

National Labor Relations Board Follows Department of Labor’s Lead and Publishes Franchisor Friendly Joint Employer Rule

Feb 25, 2020Legal AlertsEmployment Law, Joint Employer, Labor Law, NLRB

Executive Summary The National Labor Relations Board adopts a joint employer rule that negates indirect control and explicitly limits the terms and conditions of employment which may be analyzed when determining if two or more entities are joint employers. Analysis On February 26, 2020, the National Labor Relations Board (“NLRB”) released its final rule regarding the determination of joint employer […]

Department of Labor Publishes Franchise Friendly Joint-Employer Rule

Jan 13, 2020Legal AlertsDepartment of Labor, Employment Law, Joint Employer

Executive Summary The U.S. Department of Labor released a final rule regarding the determination of joint employer status under the FLSA. The standard largely mirrors the Bonnette standard that was well-settled law for decades, but the Department of Labor’s interpretative opinion is likely to be challenged, and there is some doubt of whether it will be followed by the courts. Analysis On […]

Governor Signs AB5 into Law and Complicates California’s Independent Contractor Analysis

Sep 12, 2019Legal Alerts, Statute Tracking, Thought LeadershipCalifornia, Employment Law, Independent Contractor

Executive Summary Governor Newsom signs AB5 into law making it effective January 1, 2020. The law does not address many questions for the franchise industry. Franchisors and franchisees should not expect these questions to be resolved until they are before the California Supreme Court, which could be years. Analysis Only a day after the California Assembly voted to send AB5 to this desk for […]

California Assembly Denies Procedural Vote Then Votes To Send AB5 To Governor’s Desk

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

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 […]

California Senate Passes AB5

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

Executive Summary The California Senate passed AB5. The bill now moves to the Assembly for concurrence. Analysis On September 10, 2019, the California Senate passed AB5 as amended on September 6, 2019. Votes for AB5 broke down along partisan lines with 29 ayes, 11 noes, and 0 no votes recorded.The bill will now move back to the California Assembly for […]

AB5 Amendments Incentivize Union Bargaining and Expands Rights of Action

Sep 6, 2019Statute TrackingCalifornia, Employment Law, Independent Contractor, Labor Law

Executive Summary The California Senate has amended AB5 one last time before coming to a floor vote. While several of the amendments are superfluous purpose statements and findings, technical changes that have no objective impact on the law, and small clarifications regarding individuals who were already covered or carved out from the bill (i.e., licensed manicurists), there are two notable […]

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 […]