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 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 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., […]
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 […]
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 […]
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 […]
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 […]