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January 29, 2021
To embed, copy and paste the code into your website or blog: 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 relationships in California. The Ninth Circuit then withdrew its opinion, and certified a question to the California Supreme Court: whether Dynamex applied retroactively, before franchisors and franchisees knew ...
January 28, 2021
To embed, copy and paste the code into your website or blog: In September 2020, Rohit Chopra, one of the five commissioners on the Federal Trade Commission (FTC), declared on Twitter that “[franchise] regulators must stop unfair, deceptive, and discriminatory practices that target franchisees and their employees,” and three House of Representative members wrote a letter to the Chairman of the FTC urging the agency to step up investigations of franchisor practices as a result of recent abuse...
January 18, 2021
To embed, copy and paste the code into your website or blog: On January 14, 2021, the California Supreme Court held that the ABC Test, as articulated in Dynamex, applies retroactively to claims under California’s Industrial Welfare Commission Wage Orders. ABC Test Background In 2018, in notable Dynamex Operations West, Inc. v. Superior Court, the California Supreme Court held that for purposes of compliance with California’s IWC wage orders, workers are presumed employees, unless the hiri...
January 18, 2021
Firm The first questions you should always ask yourself are: “Is there any information asked of me?” or “Is there a question in the communication?” Many emotionally charged emails do not warrant a response and can be left alone. Then ask yourself: “Do I need to respond to this now?” Typically, the email is not urgent, so generally there is time to think about the response for a day or two. Here is an example: “There is no way I am switching days with you next week. You should’ve...
December 23, 2020
To embed, copy and paste the code into your website or blog: Franchisors faced unprecedented challenges in 2020. Enactment of California’s Assembly Bill 5 on January 1, 2020 was just the tip of an iceberg. As the COVID-19 pandemic upended franchise systems across all industries, franchisors grappled with legal, operational and business consequences of AB 5’s “ABC Test.” Are franchisees now employees? Do all types of franchises meet the ABC Test or just some of them? Will franchised bu...