News & Analysis as of

Independent Contractors Franchisors Wage and Hour

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
Foley & Lardner LLP

DOL Alters Enforcement Position on Independent Contractors

Foley & Lardner LLP on

On May 1, 2025, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden administration — a...more

Constangy, Brooks, Smith & Prophete, LLP

Oh, thank heaven! 7-Eleven franchisees were not misclassified “employees,” MA high court rules

The Supreme Judicial Court of Massachusetts, answering a certified question, has ruled that five 7-Eleven franchisees were independent contractors, not misclassified “employees,” under the Massachusetts Independent Contractor...more

McCarter & English, LLP

NLRB Establishes New Joint Employer Rule

McCarter & English, LLP on

The National Labor Relations Act (NLRA) governs private sector labor/management relations in the United States. Under the NLRA, employers have certain responsibilities and restrictions with regard to their employees,...more

Fox Rothschild LLP

NLRB Wants Employers to be Responsible for Contract, Franchise Workers

Fox Rothschild LLP on

In the latest of a string of decisions seemingly supporting President Biden’s claim of being the most pro-union president in history, the National Labor Relations Board (NLRB) this week issued its Final Rule on the Standard...more

Lathrop GPM

Ninth Circuit Affirms Decision that Franchisees Are Not Employees of Franchisor

Lathrop GPM on

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

Troutman Pepper Locke

Home Health Care, Franchise, and Food Industries Under Attack: April 2022 IC Legal News Update

Troutman Pepper Locke on

Three industries suffered setbacks last month in independent contractor misclassification cases, while another targeted industry targeted scored a success. As we have reported in many prior blog posts, class action lawyers...more

Fisher Phillips

Massachusetts Franchise Owner-Operators May Be Employees of Franchisors

Fisher Phillips on

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

Troutman Pepper Locke

Employee or Franchisee? Or Both? September 2021 News Update

Troutman Pepper Locke on

In the same month that 7-Eleven prevailed in a federal court trial where convenience store franchisees claimed they were not independent contractors but rather employees entitled to the protections of state labor laws, a...more

Lewitt Hackman

Franchisor 101: The Wrong Tools to Avoid California Courts

Lewitt Hackman on

The Ninth Circuit ruled that a California Matco Tool franchisee, John Fleming, could bring a class action wage and hour suit in California, even though a forum selection clause in the distribution agreement specified Ohio...more

Bradley Arant Boult Cummings LLP

The Relationship Talk: DOL Issues New Rules on Joint Employer Status

When do your business relationships make you a joint employer? Fortunately, the DOL recently published a Notice of Proposed Rulemaking with changes to regulations regarding when two or more entities should be treated as...more

Jackson Lewis P.C.

Class Action Trends Report Fall 2019

Jackson Lewis P.C. on

Our quarterly report takes a look back at the most significant class action developments over the last year, including litigation trends, court decisions, and legislative and regulatory changes that are certain to invite...more

Fox Rothschild LLP

Time To Exhale . . . CAUTIOUSLY: Ninth Circuit Has Good News For Franchisors

Fox Rothschild LLP on

I admit I was among the scores of franchise lawyers whose blood pressure skyrocketed with passage of California’s AB 5. If a Franchise Agreement establishes an independent contractor relationship between franchisor and...more

Troutman Pepper Locke

August and September 2019 Independent Contractor Misclassification and Compliance News Update

Troutman Pepper Locke on

There were several notable court and administrative cases over the past two months, but they were overshadowed by a legislative matter: the enactment of Assembly Bill 5 in California, which was the subject of our September...more

Lewitt Hackman

Franchisor 101: Franchisor Can Be Liable as “Employer” for Missclassifying Workers

Lewitt Hackman on

The Ninth Circuit sent shockwaves through the franchise industry in ruling that last year’s California Supreme Court decision broadening who may bring wage misclassification claims (Dynamex v. Superior Court) applied...more

Fox Rothschild LLP

Not A Joint-Employer? Franchisors Now Need To Prove The Negative In California

Fox Rothschild LLP on

A wage and hour case before the Ninth Circuit Court of Appeals, Vazquez v. Jan-Pro Franchising International, is the latest front in the joint employer battle. In Vazquez, unit franchisees of a janitorial service system...more

Alston & Bird

Vazquez v. Jan-Pro: A Clean Sweep for Employees?

Alston & Bird on

In the California judiciary, the present affects the past. Our Labor & Employment Group discusses why the Ninth Circuit held that the California Supreme Court’s Dynamex ruling applies retroactively....more

Seyfarth Shaw LLP

Ninth Circuit Expands Reach of Dynamex, Holding ABC Test Retroactive

Seyfarth Shaw LLP on

Seyfarth Synopsis: In 2018 the California Supreme Court issued its radical Dynamex decision, discussed in our One Minute Memo here. Now the Ninth Circuit has piled on, holding in Vazquez v. Jan-Pro Franchising, International,...more

FordHarrison

Ninth Circuit Applies Dynamex Retroactively

FordHarrison on

In 2018, the California Supreme Court adopted the “ABC test” for determining whether workers are independent contractors under California wage orders (the Dynamex decision). For a discussion of that decision....more

Fisher Phillips

January 2019: The Top 16 Labor And Employment Law Stories

Fisher Phillips on

It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Lewitt Hackman

FRANCHISOR 101: Pain at the Pump

Lewitt Hackman on

In Curry v. Equilon Enterprises LLC, a California court ruled, and the Court of Appeal affirmed, that a class-action wage and hour lawsuit against Shell Oil could not go forward because the service station manager bringing...more

Steptoe & Johnson PLLC

The NLRB Restores Pre-Browning- Ferris Joint Employer Standard

Steptoe & Johnson PLLC on

The joint employer standard, which is used to determine the extent to which one employer may become liable for obligations of another, has long been a very politically-charged issue. It therefore comes as no surprise that...more

Troutman Pepper Locke

Your Own Agreements Can Be Your Worst Enemy in IC Misclassification Cases

Troutman Pepper Locke on

Companies that use independent contractors (ICs) typically require ICs to sign a contractor agreement prepared by the company. But, if it is drafted like the one reviewed in late September by the U.S. Court of Appeals for the...more

McAfee & Taft

Are you a joint employer?

McAfee & Taft on

Are you an employer who uses temporary employees, staffing agencies or independent contractors? Use of such contingent or contract workers is not unusual and may be necessary for your operations. If you are in that...more

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

The Employment Law Authority - September/October 2015

On October 16, 2015, the U.S. Department of Homeland Security (DHS) released a notice of proposed rulemaking (NPRM) concerning new rules for extending the Optional Practical Training (OPT) program for international students...more

Littler

A Legislative El Niño for California?: New 2016 Employment Laws for the State’s Private Sector Employers

Littler on

Experts are predicting a 95% chance of heavier-than-usual seasonal rainfall this year in Southern California based on the phenomenon known as “El Niño.”  Did the California Legislature and its Governor produce a comparable...more

28 Results
 / 
View per page
Page: of 2

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide