ABC Test vs. franchise arrangements
A Ninth Circuit case has applied the California Dynamex case retroactively. Vazquez v. Jan-Pro Franchising (9th Cir 05/02/2019) [PDF].
Jan-Pro - an international janitorial firm - had franchisors called Master Franchisors. And then under them were Unit Franchisees who were the only people actually doing janitorial work.
And those franchisees sued Jan-Pro seeking to be classified as employees rather than independent contractors.
So the question under the California Dynamex case is
whether these workers were free from control,
whether their work was outside Jan-Pro’s customary business, and
whether these workers themselves customarily had an established business.
I don't think Jan-Pro can win this case. But we'll see. And I think this is the end of these complex franchising arrangements in California.