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National Labor Relations Board Tightens Standard for Joint Employer Status

A business is a joint employer of another employer’s employees only if the two employers share or codetermine the employees’ essential terms and conditions of employment, according to a recently unveiled and long-awaited...more

"ABC" Employment Test Imposed on Franchising in California; Better News on the Joint Employment Front

California Gov. Gavin Newsom signed Assembly Bill 5 (AB-5) on September 18, 2019, which adopts the “ABC test” for certain California employment laws. Soon after, on September 24, 2019, the U.S. Court of Appeals for the 9th...more

Ninth Circuit Bolsters Franchisee Wage Misclassification Claims Against Franchisors

On May 2, 2019, the Ninth Circuit issued a ruling that has wide implications for California franchisors who rely on independent contractor relationships. In a unanimous decision, the Ninth Circuit held that the more rigid ABC...more

The Race to Change the NLRB's Joint Employer Standard Is Over. And the Winner Is . . .

After the National Labor Relations Board (NLRB) changed its joint employer standard in August 2015, two likely avenues to repeal that change emerged: Congress and the courts. In September of that year, congressional...more

Franchise Industry Victory: McDonald's Defeats Joint Employment Claim Based on Ostensible Agency Theory

On March 10, 2017, a federal court in California granted summary judgment in favor of McDonald’s and dismissed joint employment claims that had been brought against it by employees of one of its franchisees. In Salazar v....more

Landmark Ruling: Franchisor Not Liable Absent Employment Related Control

On August 28, 2014, the California Supreme Court issued a landmark ruling in favor of Domino's Pizza and all business format franchisors that do business in California. In Patterson v. Domino's Pizza, LLC, ---P.3d---, 2014 WL...more

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