California Assembly Committee on Judiciary Passes AB257

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 […]

California Assembly Committee on Labor and Employment Passes AB257 on Party Lines

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 […]

California Assembly Amends AB257 and Risks Destroying California Franchising

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 […]

California Assembly Introduces Bill To Radically Govern the Fast Food Industry

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 […]

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

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 […]

AB5 Amendments Incentivize Union Bargaining and Expands Rights of Action

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 […]

NLRB’s Ruling on Independent Contractor Status and Implications for Labor Relations and the Franchise Industry

Executive Summary “On review from a decision by the Acting Regional Director, the National Labor Relations Board issued an order that considered whether franchisees who operated shared-ride vans for SuperShuttle were employees covered under the National Labor Relations Act. Overruling precedent set by the Board in a case involving FedEx in 2014, the Board found that the shared ride drivers were independent […]