California Moves To Dismiss Franchise Groups’ Suit Over Independent Contractor Test

Mealey's (January 25, 2021, 9:52 AM EST) -- SAN DIEGO — The state of California on Jan. 14 moved to dismiss a suit filed by four franchising-related associations in a federal court challenging the constitutionality of the state’s “ABC Test,” used to determine whether a worker is an employee or independent contractor.  The state argues, among other things, that the ABC Test does not interfere with any congressional objective in the Federal Trade Commission’s Franchise Rule or the Lanham Act....