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Franchisor Victorious in Employment Misclassification Case

A federal court in Massachusetts granted summary judgment in favor of a franchisor in a long-running case against its franchisees. In Patel et al. v. 7-Eleven, Inc., five 7-Eleven store owners brought suit claiming 7-Eleven...more

Massachusetts Court of Appeals Gives Victory to Employers in Interpretation of ABC Test

A recent decision on the scope of the so-called ABC Test gives guidance to firms using independent contractors. In Tiger Home Inspection, Inc. v. Director of the Dept. of Unemployment Assistance, a Massachusetts appeals court...more

Ninth Circuit Analyzes AB 5 in Class Action Ruling

The Ninth Circuit recently reviewed a district court’s handling of a class action involving claims of employment misclassification. Bowerman v. Field Asset Services, Inc. is instructive for at least two reasons: It provides...more

The Supreme Judicial Court of Massachusetts refuses to apply the “ABC” test to determine the existence of a joint employment...

In a recent ruling, Jinks v. Credico (USA) LLC, 177 N.E.3d 509 (Mass. 2021), three individual Plaintiffs brought suit alleging that the Defendant jointly employed them with another entity. The Massachusetts court applied a...more

7-Eleven Prevails in Employee Misclassification Suit

A federal court for the Central District of California in Haitayan v. 7-Eleven, Inc. has ruled in favor of franchisor 7-Eleven and against four franchise owners who claimed they were employees under California law rather than...more

7-Eleven Franchisees Ask for Ninth Circuit’s Ruling on Employee Misclassification Suit

On Wednesday, February 10, California 7-Eleven franchise owners asked U.S. District Court Judge Dale Fischer to allow the Ninth Circuit Court of Appeals to rule on the district court’s previous denial of the franchisees’...more

California Supreme Court Rules Dynamex Decision Applies Retroactively | Newsletters | Legal News: Distribution & Franchise

The California Supreme Court has followed up on its groundbreaking decision in Dynamex Operations West Inc. v. Superior Court, 4 Cal.5th 903 (2018), which imposed the so-called “ABC Test” for determining whether a worker is...more

Federal Court Denies Class Certification of 7-Eleven Franchisees in Misclassification Suit

A recent decision from a federal court in Massachusetts is a significant victory for franchisors who continue to face lawsuits alleging they have misclassified their franchisees as independent contractors rather than...more

California Statute Offers Dramatic Change to Independent Contractor, Franchise-Franchisee Relationships

On September 18, 2020, California Governor Gavin Newsom signed a new measure — Assembly Bill 5 — which will redefine how businesses classify their workers. Commonly known as “AB 5,” the new law seeks to codify the “ABC Test”...more

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