International Franchise Association v. State of California

Good Law
United States District Court, Southern District of CaliforniaJanuary 12, 20223:20-cv-02243California4,257 words

Opinion

Trial Court Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA 10 INTERNATIONAL FRANCHISE Case No. 20-cv-02243-BAS-DEB ASSOCIATION, et al.,

ORDER GRANTING DEFENDANTS’

Plaintiffs, RULE 12(b)(1) MOTION TO v. DISMISS AND DISMISSING

ACTION WITHOUT PREJUDICE

STATE OF CALIFORNIA, et al., (ECF No. 18) Defendants.

Plaintiffs, various interest groups and associations serving the franchisors and franchisees in the United States, seek the Court’s pre-enforcement review of California Labor Code Section 2775(b)(1). Section 2775(b)(1) codifies the “ABC Test” to determine whether a worker should be classified as an employee or an independent contractor. Plaintiffs argue that the ABC Test, as applied to franchises, violates the Dormant Commerce Clause, constitutes regulatory taking without just compensation, and is preempted by federal law. Because Plaintiffs’ action is not ripe under Article III and their constitutional claims fail…

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