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Franchisor status no defense against IC misclassification claim

A franchise relationship is not a defense against independent contractor misclassification claims, according to a ruling earlier this month by a California court, JD Supra reported [1].

In Roman v. Jan-Pro Franchising International Inc., janitors classified as independent contractors sued their franchisor, Jan-Pro Franchising International, for misclassification.

To be correctly classified as independent contractors, all three parts of California’s ABC worker classification test as codified in AB 5 must be met:

Jan-Pro’s defense hinged on point B, arguing that it was not in the janitorial business but in the business of selling franchises. However, the court noted the company advertised itself as  a janitorial service and that “unit franchisees remained at all times necessary to defendant’s business.” Read the full story on JD Supra [1].