News & Analysis as of

Dynamex Franchisors

Fox Rothschild LLP

Franchising Threat No. 1: The PRO Act

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The PRO Act would do serious, and perhaps mortal, damage to the franchise industry. It would make sweeping changes to the National Labor Relations Act (NLRA), the Labor Management Relations Act (LMRA), and the Labor...more

Lewitt Hackman

Franchisor 101: California’s Dynamex/ABC Test is Retroactive

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In 2019, the U.S. Court of Appeals for the Ninth Circuit held that the ABC Test announced in a California Supreme Court decision, Dynamex Operations West, Inc. v. Superior Court, 4 Cal.5th 903 (2018) could apply to franchise...more

Fox Rothschild LLP

No Joy For Franchising in CA: AB-5 Exemption Rejected

Fox Rothschild LLP on

As if COVID, wildfires, and heat weren’t enough, California franchisors and franchisees suffered another gut punch when the legislature rejected a proposed franchise exemption to AB-5. When AB-5 was enacted in 2019, to the...more

Lewitt Hackman

Franchise 101: California Assembly Bill 5 (2019)

Lewitt Hackman on

California Governor Gavin Newsom signed into law Assembly Bill 5 (“AB-5”). AB-5 codifies into California’s Labor Code the “ABC test” for determining employee or independent contractor status, as adopted by the California...more

BCLP

New California Law Disrupts Franchise Relationships

BCLP on

Winter is coming for franchisors in California.  Last year, the California Supreme Court decided to hold California businesses liable for the violation of Massachusetts labor statutes when it adopted the ABC test for...more

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