Options For Calif. Franchisors After New Contractor Standards

Law360 (October 9, 2019, 12:05 PM EDT) -- Last year, the California Supreme Court adopted a new test for distinguishing independent contractors from employees. In Dynamex Operations West Inc. v. Superior Court of Los Angeles,[1] the court took the so-called ABC test from Massachusetts, which requires that a putative employer must meet three factors to establish an independent contractor relationship. 

The B prong requires the putative employer to show that the alleged employee is not in the same business. This is problematic for franchise relationships where franchisees are licensed to engage in the same business. Some courts subsequently recognized the unique nature of franchise relationships in considering the ABC test, but the...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!