DDIFO Joins IFA in Lawsuit vs California AB5

This week, DDIFO joined the International Franchise Association (IFA), the Asian American Hotel Owners Association (AAHOA) and the Supercuts Franchisee Association in filing a federal lawsuit challenging California Assembly Bill 5 (AB5) law. Filed in the US District Court for the Southern District of California, the lawsuit contends that AB 5 is preempted by the…

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A World of Their Own: California Election Results

It just seems logical to lump all of the California election news into its own paragraph this year. Let’s start with one of the big ones – gig economy companies won passage of Proposition 22, funded by Uber, Lyft, DoorDash and other third-party delivery services. The initiative, which passed by a 58-42% margin allows the…

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Other State Issues to Consider

Staying abreast of the plethora of issues facing the small businessman and woman in the normal course of business is enough of a challenge, but in light of coronavirus regulations, mandates and guidance, it is practically full-time. To help keep you aware, we note that New York, which just announced a mandatory self-quarantine for visitors…

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NY Governor Calls for Paid Leave Mandate

In his 2020 State of the State Address this week, New York Governor Andrew Cuomo called for employers in the Empire State to provide paid sick leave benefits for employees. The Governor’s plan would mandate that employers of 5 to 99 workers provide 5 days of paid sick leave annually and those with 100 or…

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California Considerations and Court Challenges

Where to begin? Well, for openers and staying with the theme of a January 1 effective date, a ban on the use of latex gloves in restaurants throughout California takes effect with arrival of the New Year. California Governor Gavin Newsom signed legislation back in September (SB 677) making the Golden State the 7th in…

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Classification Law Moving East

With its recently enacted legislation, AB-5, which significantly alters the ground rules for the classification of employees, California has advanced the political “acceptability” of the “ABC” test first implemented in Massachusetts. Now, it would appear that New York State may be the next state to fall in line on “ABC” classifications. A new labor-backed coalition…

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PRO Act Advances in House

By a straight party-line vote of 26-21, the US House Education and Labor Committee advanced the “Protecting the Right to Organize Act” (H.R.2474) out of committee and sent it to the full House for further deliberation. Filed by House Committee Chairman Bobby Scott (D-VA), the PRO Act would strengthen collective bargaining rights for workers in…

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Class Action Filed Using AB5 in California

Before the ink was even dry on the California Governor’s signature on Assembly Bill 5 (the sweeping worker classification law that codified the Dynamex decision) last week, rideshare company Uber was hit with a class-action suit alleging the company had illegally misclassified its drivers as independent contractors rather than employees. The plaintiff’s attorney, Shannon Liss-Riordan…

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CA Passes AB5

On Wednesday of this week, the California legislature gave final approval to AB-5, legislation that makes it much more difficult for businesses to classify workers as independent contractors. The bill essentially codifies the Dynamex Operations West decision of the California Supreme Court, which adopted the Massachusetts model of determining employee status with an “ABC test”.…

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California Codifying “ABC Test”?

The California state senate is closing in on final consideration of AB-5, which will codify the Dynamex decision of the California Supreme Court. That decision, rendered in early 2018, established the “ABC Test” for determining whether a worker is an employee or an independent contractor as opposed to the historically-accepted Economic Realities Test. Whereas the…

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