Labor/Employment
Nov. 17, 2020
Franchisors argue US law preempts AB 5 for them
The International Franchise Association, Asian American Hotel Owners Association, Dunkin' Donuts Independent Franchise Owners Association, and Supercuts Franchisee Association planned to file the lawsuit in federal court Tuesday, arguing AB 5 is preempted by the Federal Trade Commission Franchise Rule and federal Lanham Act.
Arguing in a new lawsuit that Assembly Bill 5 does not apply to the franchising industry because the statute is preempted by federal law, some franchisors are hoping to obtain what California truckers did when they made a similar argument back in January: a court order stopping the state from enforcing the state labor law.
The International Franchise Association, Asian American Hotel Owners Association, Dunkin' Donuts Independent Fra...
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