Orlando World Center Marriott
8701 World Center Dr
Orlando, FL 32821
Susan Grueneberg will be speaking about the California Assembly Bill 5 and the impact it has on franchising at the International Franchise Association annual convention. California’s codification of Dynamex Operations West, Inc. v. Superior Court of Los Angeles (California Assembly Bill 5 (AB 5)) is a potential game changer in the franchise community. Dynamex sets forth a three-part test in which all elements must be satisfied in order for a worker to be deemed an independent contractor instead of an employee. While it is not clear that Dynamex applies to franchising, given that the franchise industry did not receive an exemption from the law (despite industry’s best efforts). Franchisors and franchisees must consider the potential legal and business impacts of this bill on their businesses. This session will discuss the potential impact of AB5 on both franchisors and franchisees, consider what steps each should take to protect themselves from liability under the statute, and review potential new bills being proposed in other statehouses.