The “progressive” effort to have franchisors declared the employers of their franchisees may have become law in California under a bill (AB-5) just enacted by its Legislature and signed into law on Sept. 18, 2019 by Gov. Gavin Newsom.

Statute May Deem Franchisors Employers of Franchisees

California Assembly Bill 5 (AB-5) was approved by the California Legislature on Sept. 10-11, 2019 and a week later signed by California Gov. Gavin Newsom. And New York’s Gov. Andrew Cuomo thereupon expressed his interest in considering such legislation.