David J. Kaufmann IFA Lawsuit Challenging California AB-5 Dismissed
The decision is remarkable for utterly ignoring a decision from the very same court handed down just a little over three months earlier.
March 10, 2022 at 12:15 PM
8 minute read
On Jan. 12, 2022, the U.S. District Court for the Southern District of California dismissed, without prejudice, the International Franchise Association's (IFA) lawsuit against the state of California which contended that California Labor Code §2775(b)(1)—which codifies the "ABC Test" to determine whether a worker should be classified as an employee or an independent contractor—violates the Commerce Clause and is preempted by federal law when applied to franchising. See International Franchise Association et al. v. State of California et al. (IFA v. California), 2022 WL 118415 (S.D. Cal. 2022).
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