International Franchise Association v. State of California
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…