Recently we discussed the headwinds that remain for the franchise community as a result of policy changes coming from Washington and the various state capitols. What should franchisors consider as they swim in this sea of...more
The California version of the ABC test is arguably the most hostile to franchising. Nonetheless, the risk is not confined to California.
This is because the ABC employee classification test, with variations, has been...more
It was predictable – even inevitable – that the Biden administration would reverse much of Trump’s labor oeuvre. But no one could have predicted how quickly! In a little more than a month, the administration has:...more
2/26/2021
/ ABC Test ,
Biden Administration ,
Business Ownership ,
Contract Terms ,
Coronavirus/COVID-19 ,
Department of Labor (DOL) ,
Federal Labor Laws ,
Federal Trade Commission (FTC) ,
Franchisee ,
Franchises ,
Joint Employers ,
Managers ,
NLRB ,
NLRB General Counsel ,
Safe Harbors ,
Trump Administration ,
Unions ,
Wage and Hour
The one-two punch of state and federal employment standards activity poses an existential threat to franchising; many commentators, including this one, have acknowledged that fact. But why? Did the California legislature or...more
Change is coming, but will it be a welcome change or a harbinger of woe?
Over the last 8 years or so, the ever-changing landscape of employment laws has arguably posed an existential threat to franchising. The franchise...more
12/9/2020
/ ABC Test ,
Biden Administration ,
Department of Labor (DOL) ,
Fair Labor Standards Act (FLSA) ,
Franchises ,
Franchisors ,
Joint Employers ,
Justice Scalia ,
Misclassification ,
NLRB ,
Safe Harbors ,
State Attorneys General ,
Trump Administration ,
Wage and Hour
Hot on the heels of disappointing AB-5 news from California, a federal district court in Manhattan delivered a stinging rebuke to the Department of Labor (“DOL”), invalidating the control-based joint employment rule issued by...more
I admit I was among the scores of franchise lawyers whose blood pressure skyrocketed with passage of California’s AB 5. If a Franchise Agreement establishes an independent contractor relationship between franchisor and...more
As noted in our first post on this topic, California’s AB-5 codified the employment test set forth in Dynamex Operations West v. Superior Court of Los Angeles, 4 Cal. 5th 903 (2018). Although the full implications of this new...more
“Someday, California is going to disappear into the ocean.”
That phrase usually refers to the San Andreas Fault. But for those in the franchise industry, it may now refer to AB-5, a new California law that calls for...more