Tag Archives: Franchise Law

A Warning for Franchises: Ninth Circuit Retroactively Applies California’s Independent Contractor Standard in Class Action

In Vazquez v. Jan-Pro Franchising International, Inc., a decade-old proposed class action against a franchisor, the Ninth Circuit ruled on May 2, 2019, that the recent California Supreme Court case Dynamex Ops. W. Inc. v. Superior Court of Los Angeles, 416 P.3d 1 (Cal. 2018) applies retroactively.

Vazquez is a warning for franchises and other businesses that use independent contractors to practically analyze their business models using the ABC test and consider whether amendments to contracts or changes to their business models are needed so that contractors and workers are not deemed to be employees.

View the full Alert on the Duane Morris LLP website.