Independent Contractor

Haitayan v. 7-Eleven: District Court Finds Franchisor does not Exercise Enough Control over Franchisees for them to be Considered Employees

Sep 8, 2021Legal AlertsABC Test, Borello Test, California, CFIL, Employment Law, Independent Contractor

Executive Summary: In an unpublished decision, Judge Fischer of the United States District Court for the Central District of California found in favor of 7-Eleven and against franchisees on the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 […]

Patel v. 7-Eleven, Inc.: Federal Court Finds that FTC Franchise Rule Preempts State ABC Independent Contractor Test

Sep 10, 2020Legal AlertsABC Test, Employment Law, Federal Court, Independent Contractor

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, […]

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., […]

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) – […]

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. […]