Franchise Groups Plan to Sue Over California Gig Worker Law (1)

California’s rigid worker classification standard threatens relationships between franchise owners and their brands, business groups said in announcing the latest legal challenge to the state’s controversial Assembly Bill 5.

The International Franchise Association, along with several other groups and companies such as the Asian American Hotel Owners Association, Dunkin’ Donuts, and Supercuts, said they will file a lawsuit Tuesday in the U.S. District Court for the Southern District of California, in San Diego.

They want the court to stop the state from enforcing A.B. 5 against franchises, arguing that federal law governs franchise relationships and preempts California’s law.

The ...