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DOL Seeks to Restore the Totality-of-the-Circumstances Approach to the Test for Independent Contractor Classification

The Department of Labor has issued a new proposed rule to provide guidance on the classification of independent contractors and employees under the Fair Labor Standards Act and as discussed by Foley’s Labor and Employment...more

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

NLRB Announces it Will Revisit its FedEx and SuperShuttle Decisions in Atlanta Opera

On Monday, December 27, 2021, the National Labor Relations Board (the “Board” or the “NLRB”) issued a notice of proposed rulemaking and invited public participation in reconsidering the test for classifying independent...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

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

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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