New law 'cannon aiming at mosquito'
posted on 20th September 2019
20 September 2019 - California's AB5 law, which could see franchisees classified as employees, has been called a 'cannon aiming at a mosquito' by the International Franchise Association. The law, which is designed to protect workers in the gig economy such as Uber and food delivery service drivers, but could affect the franchise business model as collateral damage. The IFA has asked for franchisees to be exempt from the law, which comes into force on 1 January 2020. Uber and food delivery companies Lyft and Doordash say they have pledged $90 million on a ballot initiative next year that would exempt them from AB-5.
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