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Franchise Law Update

Commentary on Business and Legal Issues of Franchising

Joint Employer

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Franchising Threat No. 3: Other State Legislation and Policies

By Natalma M. McKnew & John Gotaskie on August 29, 2021

The California version of the ABC test is arguably the most hostile to franchising. Nonetheless, the risk is not confined to California.

This is because the ABC employee classification test,…
Continue Reading Franchising Threat No. 3: Other State Legislation and Policies

Posted in Business Updates, Industry Updates, Joint Employer

WHIPLASH! A stunningly fast reversal of labor policies

By Natalma M. McKnew on February 25, 2021

It was predictable – even inevitable – that the Biden administration would reverse much of Trump’s labor oeuvre. But no one could have predicted how quickly! In a little more…
Continue Reading WHIPLASH! A stunningly fast reversal of labor policies

Posted in Joint Employer, Risk Management

Unintended Consequences? The Employment Battle Threatens Franchising

By Natalma M. McKnew on January 5, 2021

The one-two punch of state and federal employment standards activity poses an existential threat to franchising; many commentators, including this one, have acknowledged that fact. But why? Did the California…
Continue Reading Unintended Consequences? The Employment Battle Threatens Franchising

Posted in Business Updates, Joint Employer

Joint Employment in Chaos: DOL Joint Employment Rule Invalidated

By Natalma M. McKnew on October 5, 2020

Hot on the heels of disappointing AB-5 news from California, a federal district court in Manhattan delivered a stinging rebuke to the Department of Labor (“DOL”), invalidating the control-based joint…
Continue Reading Joint Employment in Chaos: DOL Joint Employment Rule Invalidated

Posted in Joint Employer, Legal Decisions

A Summer Potpourri (Part 2): States Litigate Joint Employer Rule and NASAA speaks

By Natalma M. McKnew on June 29, 2020

In Part 1 of this series, we discussed the recent actions taken by Congress regarding the PPP program as well as the efforts by the Fed. In today’s post, we…
Continue Reading A Summer Potpourri (Part 2): States Litigate Joint Employer Rule and NASAA speaks

Posted in Industry Updates, Joint Employer, Legal Decisions

Franchising: Batting a Thousand in Spring Training!

By Natalma M. McKnew on February 29, 2020

In my recent post commenting on the Department of Labor’s joint employer rule, I wondered whether the NLRB would follow suit. Now we know, and the answer’s positive. It’s very…
Continue Reading Franchising: Batting a Thousand in Spring Training!

Posted in Joint Employer

ALERT: NLRB Rule Requires Direct Control for Joint Employer Status

By John Gotaskie on February 25, 2020

The wait is over: This morning the NLRB announced that it will issue its final rule governing joint-employer status tomorrow, February 26, 2020. According to the NLRB itself, the “final…
Continue Reading ALERT: NLRB Rule Requires Direct Control for Joint Employer Status

Posted in Joint Employer

Meanwhile in the NLRB, the McDonald’s Case Continues

By Natalma M. McKnew on January 30, 2020

Recently, we lauded the Department of Labor’s return to the control test of joint employment. Perhaps presciently, we wondered whether the NLRB would follow the same course.

The latest turn…
Continue Reading Meanwhile in the NLRB, the McDonald’s Case Continues

Posted in Joint Employer

Time to Exhale . . . CAUTIOUSLY: Ninth Circuit has good news for franchisors

By Natalma M. McKnew on October 7, 2019

I admit I was among the scores of franchise lawyers whose blood pressure skyrocketed with passage of California’s AB 5. If a Franchise Agreement establishes an independent contractor relationship…
Continue Reading Time to Exhale . . . CAUTIOUSLY: Ninth Circuit has good news for franchisors

Posted in Joint Employer, Legal Decisions

California’s AB-5 Implications (Part 2)

By Natalma M. McKnew on September 26, 2019

As noted in our first post on this topic, California’s AB-5 codified the employment test set forth in Dynamex Operations West v. Superior Court of Los Angeles, 4 Cal. 5th …
Continue Reading California’s AB-5 Implications (Part 2)

Posted in Joint Employer, Legislative Updates

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