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3 Takeaways From The Franchising Suit Challenging AB 5

Law360 (November 23, 2020, 8:04 PM EST) -- California's A.B. 5 law may cause business owners who run franchises of companies to be tagged as employees of larger corporations, according to a lawsuit filed by the International Franchising Association, which is asking a federal court to exclude franchising from the Golden State's worker classification test.

A.B. 5 enshrined in state law a three-part ABC test that the California Supreme Court adopted in its 2018 ruling in Dynamex Operations West v. Superior Court. If a company can't show that a worker is free from control, is involved in a line of work different from its own and works in a...

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