Having just completed what arguably was one of its most consequential sessions in recent history, the Supreme Court of the United States (SCOTUS) announced last week that it was going to pass on a challenge to California’s AB5. The law, which was enacted back in 2019, codified a 2018 state court decision (Dynamex Operations v Superior Court). The Dynamex decision enacted the so-called ABC test for determining employee versus independent contractor status for purposes of wage and hour claims as well as employment benefits. The California Trucking Association brought a lawsuit challenging the law and an injunction against the law taking effect had been in effect pending the appeal to SCOTUS. That injunction was effectively lifted when the high court declined to consider the case and the law became effective immediately. Under the ABC test, workers are considered employees unless all three of the following criteria are met: the worker is free from the control and direction of the hiring entity as relates performance of work; the worker performs work that is outside the usual course of business of the hiring entity; and the worker is customarily engaged in an independently established trade or occupation of the same kind of work. The decision is expected to have a major impact on ongoing supply chain issues and some have even opined that the ABC test could have ramifications over time for the franchise business model.