National Labor Relations Board Publishes Final Rule Significantly Expanding Definition of Joint Employer

Executive Summary The National Labor Relations Board adopts a joint-employer rule that expressly incorporates reserved and indirect control over essential terms and conditions of employment, as factors to be analyzed when determining if two or more entities are joint employers. Analysis On October 26, 2023, the National Labor Relations Board (“NLRB”) released its final rule regarding the determination of joint employer status under the […]

The Slow Down of the FAST Act: Surprise Deal Reached Which Ends Statutory Joint Employee Threat Until 2028 in California

On September 11, 2023, an unprecedented deal was announced by labor groups and the fast food industry which would give California workers a $20 minimum wage and repeal The Fast Food Accountability and Standards Recovery Act (“FAST Act”). The FAST Act, signed by Governor Newsom on September 5, 2022, sought to establish a fast food regulatory council to promulgate minimum […]

Governor Signs AB257 into Law on Labor Day Paving the way for Untenable Fast Food Councils

Executive Summary Governor Newsom signed AB257 into law. Unless there is legal action, it will go into effect in 2023. Analysis On Labor Day, September 5, 2022, Governor Newsom signed AB257 into law. As part of his signing statement, Governor Newsom stated the following: “California is committed to ensuring that the men and women who have helped build our world-class […]

California Senate and Assembly Pass AB257 On Same Day

Executive Summary After amending AB257 on August 25, the Senate voted to pass the bill. Immediately thereafter on the same day, the Assembly voted to pass AB257 in concurrence with Senate Amendments. The bill now moves to the Governor’s desk for signature which is expected to occur on Labor Day. Analysis After three readings, on August 29, 2022, the Senate […]

California Senate’s Last Minute Amendment Removes Joint Employer Liability … For Now

Executive Summary After passing all of the necessary committees in both the Assembly and the Senate, AB257 has been amended to remove joint employer liability from AB257. While there are numerous other changes that are focused on aspects of the Fast Food Sector Council will operate, this amendment removes the most significant threat to the franchise industry in the State […]

California Senate Appropriations Committee Passes AB257

Executive Summary After briefly being placed on the suspense file, the California Senate Appropriations Committee passed AB257. The bill now moves to the full Senate for consideration. Analysis On August 11, 2022, the Senate Appropriations voted to pass AB257 by a vote of 5 ayes and 2 noes. The bill passed the Senate Judiciary Committee after it was placed on […]

California Senate Judiciary Committee Passes AB257 As Amended

Executive Summary The California Senate Judiciary Committee has voted to pass AB257 as Amended on June 16 and refer the bill to the Appropriations Committee. It is appearing increasingly likely that AB257 will pass this year. Analysis On June 28, 2022, the Senate Judiciary Committee voted to pass AB257 by a vote of 7 ayes, 1 no, and 3 no […]

California Senate Labor, Public Employment and Retirement Committee Amends and Passes AB257

Executive Summary The California Senate Labor, Public Employment and Retirement Committee has voted to pass and amend AB257. The amendments remain focused on the powers of the new Fast Food Sector Council but the Committee added additional clauses incentivizing collective bargaining. The bill now moves to the Judiciary Committee. Analysis On June 13, 2022, the California Senate Labor, Public Employment […]

California Assembly Makes Minor Amendment to AB257

Executive Summary After passing the Assembly on January 20, 2022, the Assembly made one more minor amendment to AB257 before it moves to the Senate for consideration. Analysis On January 27, 2022, the Assembly chose to delete two sentences from AB257. Specifically, the Assembly deleted the following passage: After amendment, the Assembly passed AB257 again, this time with a vote […]

California Assembly Amends AB257 and Passes AB257

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 […]