How will AB-5 impact franchise relationships in California? What steps can franchisors take to best protect their interests in California in a post-Dynamex, post AB-5 landscape? These are some of the questions Tami McKnew and I will be answering in a Webinar on October 28, 2019. It’s free, and we hope you will join us. You can RSVP here.
The news on AB-5 has been fast and furious in the past few weeks. First, was the summary of AB-5 and the new ABC standard to determine whether a worker is an independent contractor or employee. Then were concerns about what the law did not say, and how it could be interpreted including in the franchise context. Then came a bit of good news when the 9th Circuit ruled that the ABC test did not apply to a franchise employees, and did not create a joint employment relationship with the franchisor.
But there are still many unanswered questions. Will any other businesses successfully lobby for an exemption to AB-5 before January 1st? What will happen with the ballot measure set forth by technology companies? How much of the law will be retroactive, and what exactly does that mean? And strategically, what should businesses in California do given this legal landscape, especially if some or all of their California work force is comprised of independent contractors?
If you have a franchise in California or are a franchisor and operate in California, or you are just interested in this topic, please join me and Tami to delve into these issues on Monday, October 28th. We hope to provide some clarity, or at least some viable options to mitigate risk.