News & Analysis as of

Franchise Agreements Employment Litigation

Lewitt Hackman

Franchisor 101: Joint Employer? Check √

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A Maryland federal district court denied a restaurant franchisor’s motion to dismiss, concluding that a restaurant manager at a franchised location alleged sufficient facts to support a finding that the franchisor is a joint...more

Lathrop GPM

First Circuit Certifies Second Employee Misclassification Question to Massachusetts Supreme Court in Ongoing 7-Eleven Case

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The First Circuit Court of Appeals recently certified to the Massachusetts Supreme Court the question of whether franchisee plaintiffs in an ongoing case pass the threshold inquiry under the state’s three-prong employee...more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

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In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Lathrop GPM

Maine Federal Court Grants Franchisor’s Motion to Dismiss Age Discrimination Claim Brought by Franchisee’s Independent Contractor

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A federal court in Maine granted a franchisor’s motion to dismiss claims asserting that a franchisor was liable for its franchisee’s alleged age discrimination in employment. Goodwill v. Anywhere Real Est., 2023 WL 4034372...more

Lewitt Hackman

Franchisee 101: No Joint Employer, No Cry

Lewitt Hackman on

A federal district court in New York dismissed workplace harassment and retaliation claims against corporate affiliates of the Golden Krust Caribbean Bakery & Grill franchisor for damages as a result of workplace harassment...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

Fisher Phillips

Massachusetts Franchise Owner-Operators May Be Employees of Franchisors

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The Massachusetts Supreme Judicial Court just held that 7-Eleven franchisees may be employees of 7-Eleven under Massachusetts wage and hour law. The March 24 decision in Dhananjay Patel v. 7-Eleven, Inc. will have significant...more

Carlton Fields

Sixth Circuit Affirms Ruling That Arbitrator Is to Determine Arbitrability of Employment Dispute Between Franchise Employees and...

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The plaintiffs filed a class action against Domino’s, alleging that the company’s franchise agreement violated federal antitrust law as well as state law. ...more

Littler

Highest Court in Canada Says Substance, not Form, will Determine Independent Contractor or Employee Status

Littler on

A recent Supreme Court of Canada (SCC) decision considered whether a franchisee who entered into a franchise agreement with a franchisor was an employee or an independent contractor. The fact-specific case, Modern Cleaning...more

Parker Poe Adams & Bernstein LLP

Franchises Continue to Face Litigation Over Employee ‘No-Poaching' Agreements

Several years ago, state attorneys general began investigating claims of antitrust violations based on franchise agreements that required franchisees not to hire employees of another franchisee. Despite the regular use of...more

Polsinelli

Anti-Poaching Provisions in Franchise Agreements Are Drawing Increased Scrutiny

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Franchise agreements often contain provisions prohibiting the franchisee from soliciting or hiring workers employed by the franchisor or other franchisees. Such “anti-poaching” agreements have recently come under increased...more

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