Last week, IFA submitted comments to the New Jersey Department of Labor opposing proposed changes to the state’s ABC Test, which are the factors determining whether a worker is an employee or an independent contractor under state labor laws.
Why it matters: The proposed revisions could wrongly classify franchise relationships as employment, misconstruing brand standard controls legally required to protect trademarks and necessary to protect franchisee equity in their businesses as factors demonstrating an employment relationship.
The big picture: IFA’s comments urge the Department to withdraw the rule, citing potential harm to over 21,000 franchised businesses, 228,000 jobs, and $25 billion in economic output in New Jersey.
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