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Appeals › Franchisors › Employment Litigation

Polsinelli

Landmark Texas Supreme Court Case Finds No “Direct Liability” for Franchisor Arising Out of Franchisee Employee’s Actions

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On May 2, 2025, the Texas Supreme Court reversed a Texas Court of Appeals’ decision that had affirmed a jury’s verdict finding a franchisor directly liable to the customer of a franchisee for actions undertaken by the...more

Lathrop GPM

Ninth Circuit Affirms Decision that Franchisees Are Not Employees of Franchisor

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The Ninth Circuit Court of Appeals recently affirmed a decision that a group of franchisees are not employees of their franchisor, even though the trial court failed to apply the correct test. Haitayan v. 7-Eleven, Inc., 2022...more

Parker Poe Adams & Bernstein LLP

What the Labor Department's New Joint Employer Rule Means for Employers in the Carolinas

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The U.S. Department of Labor’s new joint employment regulations appear to provide franchisors and some other contractual business arrangements with protections against wage claims from workers not employed by them. However,...more

BCLP

New California Law Disrupts Franchise Relationships

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Winter is coming for franchisors in California.  Last year, the California Supreme Court decided to hold California businesses liable for the violation of Massachusetts labor statutes when it adopted the ABC test for...more

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