Is Socialist Franchising Coming to California?
AB-257 would destroy franchising in California, turning it into an unrecognizable government-run enterprise.
November 30, 2021 at 12:00 PM
8 minute read
The state whose recently enacted AB-5 law has in significant part triggered the nationwide supply chain breakdown is now threatening to turn franchising into a socialist endeavor. (AB-5 stands for "Assembly Bill 5," which was enacted a few years ago in California and all but eliminates the notion of an "independent contractor" in that state, meaning that shipping companies can no longer engage independent truck drivers to haul their goods—previously the norm—without being deemed their employers with all of the many costs, taxes and liabilities associated with that status.)
Organized and throttled by the Service Employees International Union (SEIU) thousands of fast food workers across California hit the streets on Nov. 9, 2021 calling for enactment of the "Fast Food Accountability and Standards Recovery Act" (Assembly Bill 257, shorthanded as the "FAST Act" or "AB-257"). Sponsored and strongly pushed by Assemblywoman Lorena Gonzalez (one of the progenitors and strong supporter of AB-5), AB-257 would, if enacted, according to the California Assembly's Legislative Counsel's Digest: "… [E]stablish the Fast Food Sector Council … to be composed of 11 members to be appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee … The purpose of the council would be to establish industry-wide minimum standards on wages, working hours, and other working conditions related to the health, safety, and welfare of, and supplying the necessary cost of proper living to, fast food restaurant workers … The bill would define the characteristics of a fast food restaurant, including that the establishment be part of a set of fast food restaurants consisting of 30 or more establishments nationally that share a common brand … ."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSilk Road Founder Ross Ulbricht Has New York Sentence Pardoned by Trump
3 minute readBipartisan Lawmakers to Hochul Urge Greater Student Loan Forgiveness for Public-Interest Lawyers
Anti-Abortion Groups' Challenge to New York's 'Boss Bill' Is Returning to Federal Trial Court
Trending Stories
- 1Divided Eighth Circuit Sides With GE's Timely Removal of Indemnification Action to Federal Court
- 2Former U.S. Dept. of Education Attorney Suspended for Failure to Complete CLE Credits
- 3ArentFox Schiff Adds Global Complex Litigation Partner in Los Angeles
- 4Bittensor Hackers, Accused of Stealing Over $28 Million, Face Federal Lawsuit
- 5In Novel Oil and Gas Feud, 5th Circuit Gives Choice of Arbitration Venue
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250