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Employer Liability Issues State Labor Laws Franchises

Ogletree, Deakins, Nash, Smoak & Stewart,...

New York State Senate Bill Would Make Fast-Food Franchisors Jointly and Severally Liable for Certain Labor Law Violations

On April 8, 2025, the New York State Legislature took up Senate Bill S7289, which, if enacted, would amend the New York Labor Law (NYLL) by adding a new article 35-A, otherwise known as the “New York State Fast Food...more

Lewitt Hackman

California Fast Food Franchisors Targeted Again

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California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act (the “FAST Act” enacted in 2022), was to become effective January 1, 2023. The FAST Act established a 10-member Fast Food Sector...more

Amundsen Davis LLC

Local and State Employment Law Update: Sex Harassment and Discrimination, Salary Disclosure and Equal Pay

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ARIZONA- Pursuant to H.B. 2146, employers must notify the Arizona Department of Homeland Security about any security breach involving personal information, if more than 1,000 state residents (including employees and...more

Morgan Lewis

Massachusetts High Court Issues Three Major Wage and Hour Decisions

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The Massachusetts Supreme Judicial Court recently issued three decisions with significant implications for employers in the commonwealth, holding that (1) when an employer pays wages to an employee after the deadlines...more

Littler

Massachusetts Top Court Issues Key Ruling Impacting Independent Contractors

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On March 24, 2022, the Massachusetts Supreme Judicial Court (SJC) handed down a key ruling that could have a significant impact on franchising across the state. In Patel v. 7-Eleven, Inc., the SJC was asked whether the...more

Proskauer - Law and the Workplace

Massachusetts High Court Clarifies Test to Determine Joint Employer Status under State Wage and Overtime Statutes

On December 13, 2021, the highest state court in Massachusetts ruled that the proper test for determining joint employer status under the state’s wage and overtime statutes is the “totality of the circumstances” test formerly...more

Lewitt Hackman

Franchisor 101: AB 5’s Preemptive Strike

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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,...more

Lewitt Hackman

Competing Tests: Employee or Independent Contractor? Saving the Franchise Model

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Download PDF Assembly Bill 5 took effect in California on January 1, 2020 and governs when a business can treat a worker as an employee as opposed to an independent contractor. Under AB5 and its “ABC” test, a hiring entity...more

Littler

WPI Wage Watch: Minimum Wage, Tip, and Overtime Developments (February 2020 Edition)

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Hey, do you want to read an article not about COVID-19? Well, you are in luck, because in this virus-free issue of Wage Watch, we discuss only developments concerning the minimum wage, tips, and overtime that occurred in the...more

Littler

WPI Wage Watch: Minimum Wage, Tip, and Overtime Developments (January 2020 Edition)

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If January's minimum wage, tip, and overtime developments forecast what employers should expect throughout the remainder of the year, it could be a challenging 2020....more

Best Best & Krieger LLP

Doing Business in 2020: Courts Tackle Employment Law

Part 2: New Employment-Related Court Decisions Impacting California’s Public and Private Entities - California and federal courts handed down a number of labor and employment-related decisions last year, impacting...more

Littler

New Jersey Enacts Legislative Package to Add Teeth to Worker Misclassification Laws

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Seeking to tighten worker misclassification enforcement in New Jersey, on January 20, 2020, Governor Phil Murphy signed into law a package of legislation to add misclassification penalties, allow stop-work orders against...more

Littler

Plaintiffs’ Bar Seeks to Expand Reach of California’s Dynamex Decision and ABC Test to Franchising, Joint Employment

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The battle over the scope and applicability of the so-called “ABC test” in determining California employers’ potential liability under wage and hour and other state labor laws continues unabated....more

Lewitt Hackman

Good News for California Employers Following a Difficult 2019 Legislative Session

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On January 1, 2020, California businesses faced several new laws that may significantly impact business operations, including AB 5 (codifying the “ABC” test) and AB 51 (restricting the use of mandatory arbitration). On the...more

Lewitt Hackman

Franchise 101: California Assembly Bill 5 (2019)

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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

ArentFox Schiff

Lovin' It: Ninth Circuit Rules McDonald's is Not a Joint Employer with Franchisee in California

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In a case that should grab the attention of franchisors across the country, a panel of the US Court of Appeals for the Ninth Circuit has ruled that McDonald’s Corporation is not the joint employer of the employees of a...more

ArentFox Schiff

Lovin' It: Ninth Circuit Rules McDonald's is Not a Joint Employer with Franchisee in California

ArentFox Schiff on

In a case that should grab the attention of franchisors across the country, a panel of the US Court of Appeals for the Ninth Circuit has ruled that McDonald’s Corporation is not the joint employer of the employees of a...more

Bradley Arant Boult Cummings LLP

McDonald’s Fries Franchise Workers’ Claims, Lands Whopper of a Ruling for Franchisors

In an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees...more

Littler

Dynamex Retroactivity Question Sent to California State Court

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On September 24, 2019, the U.S. Court of Appeals for the Ninth Circuit certified to the Supreme Court of California the question of whether that court’s landmark 2018 decision in Dynamex v. Superior Court should be applied...more

Fox Rothschild LLP

California’s AB-5 Implications (Part 1)

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“Some day, California’s going to fall into the ocean” usually refers to the San Andreas fault. Now it may refer to AB-5, and the future of the franchise industry in California. The California legislature has now passed...more

Foley & Lardner LLP

California Statute Offers Dramatic Change to Independent Contractor, Franchise-Franchisee Relationships

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On September 18, 2020, California Governor Gavin Newsom signed a new measure — Assembly Bill 5 — which will redefine how businesses classify their workers. Commonly known as “AB 5,” the new law seeks to codify the “ABC Test”...more

Orrick - Trade Secrets Group

Washington Restricts Use of Non-Competition Agreements

Earlier this year, Washington adopted a new law—Engrossed Substitute House Bill 1450—that places significant restrictions on the enforceability of non-competition agreements. The law applies to “every written or oral...more

FordHarrison

Ninth Circuit Withdraws Decision Applying Dynamex Retroactively

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On July 22, 2019, the Ninth Circuit withdrew its recent decision applying the landmark employee/independent contractor classification case, Dynamex, retroactively and indicated that it will be certifying the question to the...more

Littler

Franchising and California at a Crossroads: the Dynamics of Dynamex and the ABC Test

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In 2018, the Supreme Court of California turned much of the established law regarding worker classification on its head with its decision in Dynamex Operations West Inc. v. Superior Court....more

Fisher Phillips

Ohio Limits Joint Employment Status For Franchisors

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Ohio recently amended its definition of “employer” in order to limit the joint employer status of franchisors. Effective March 20, 2019, franchisors will not be considered joint employers with their franchisees unless one of...more

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