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
The Eleventh Circuit Court of Appeals recently issued an opinion concerning a dispute over a franchisor’s effort to mandate changes to a franchisee’s operations. The Court granted the franchisor a mixed result. The decision...more
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
Increasing prices are on the minds of many. Price spikes have increased spending on housing, food, clothing, and more. Fuel prices—and especially gasoline for cars—are at the core of many of these increases. A lot of factors,...more
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 U.S. District Court for the District of Puerto Rico has recently ruled on a case dealing with Puerto Rico’s Dealer’s Contracts Act, also known as Law 75. Law 75 prohibits principals or suppliers from impairing their...more
In Central Jersey Construction Equipment Sales, LLC v. LBX Company, the U.S. District Court for the Eastern District of Kentucky recently dismissed a lawsuit based largely upon a plaintiff’s allegations of violation of the...more
The Sixth Circuit has held that a contractual forum-selection clause in a franchise agreement was unenforceable because it violated state law.
In Lakeside Surfaces, Inc. v. Cambria Company, LLC, Lakeside Surfaces, a...more
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
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
A recent federal court decision explores the concept of associational standing, the right of an association of franchisees to sue a franchisor on behalf of its member franchises. In APFA Inc. v. UTAP Management, LLC, the...more
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
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
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
For the first time in over a decade, the Federal Trade Commission is considering changes to its Franchise Rule. The Rule represents an effort by the Commission to prevent unfair and deceptive practices by franchisors against...more
This week, a federal judge in the Southern District of New York struck down most of a U.S. Department of Labor rule that limited when multiple businesses may be liable to the same worker under federal wage law, the so-called...more
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
Last week, a federal judge in the Southern District of New York struck down most of a U.S. Department of Labor rule that limited when multiple businesses may be liable to the same worker under federal wage law, the so-called...more
One of the most important tools manufacturers and franchisors have available to manage their networks are the agreements they sign with their channel partners. Significant time and effort go into those contracts, ensuring...more
Three members of the JANI-KING® franchise system filed suit last week in federal court in Washington, D.C. alleging that the United States Small Business Administration (the SBA) has discriminated against franchised...more
4/24/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Discrimination ,
Eligibility Determination ,
Enforcement Authority ,
Federal Trade Commission (FTC) ,
Injunctive Relief ,
Loan Applications ,
Paycheck Protection Program (PPP) ,
SBA ,
Small Business ,
Small Business Loans
A significant amount of legal activity has taken place recently in the area of joint employment. Joint employment exists when more than one entity is deemed to be a worker’s employer. Typically, a direct employer and a...more
2/6/2020
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Equal Employment Opportunity Commission (EEOC) ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Final Rules ,
Franchisee ,
Franchises ,
Franchisors ,
Hiring & Firing ,
Joint Employers ,
NLRB ,
Wage and Hour
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
9/20/2019
/ ABC Test ,
CA Supreme Court ,
Employee Definition ,
Employer Liability Issues ,
Franchises ,
Gig Economy ,
Governor Newsom ,
Independent Contractors ,
Misclassification ,
State and Local Government ,
State Labor Laws ,
Wage and Hour
Litigation continues over the standard for determining how and under what circumstances a joint-employer relationship can exist. On December 28, 2018, the United States Court of Appeals for the District of Columbia Circuit...more
On September 14, 2018, the National Labor Relations Board (NLRB) issued a Notice of Proposed Rulemaking regarding its standard for determining the existence of joint-employer relationships. The proposed rule has the potential...more
9/20/2018
/ Browning-Ferris Industries of California Inc. ,
Comment Period ,
Employer Liability Issues ,
Franchisee ,
Hiring & Firing ,
Joint Employers ,
NLRA ,
NLRB ,
Proposed Rules ,
Public Comment ,
Rulemaking Process ,
Staffing Agencies ,
Terms and Conditions