7-Eleven Beats Mass. Franchisees' Misclassification Suit

Law360 (September 10, 2020, 9:07 PM EDT) -- A Massachusetts federal judge threw out a group of 7-Eleven franchisees' lawsuit claiming they are misclassified as independent contractors, saying Thursday that defining all franchisees as employees "would eviscerate the franchise business model."

A group of five 7-Eleven store owners had alleged in a proposed class suit that they should be considered employees — and allotted all the associated benefits — by the national convenience chain under the Massachusetts Independent Contractor Law.

However, U.S. District Judge Nathaniel M. Gorton found that the definition of an employee under the state law "is nearly identical" to how the Federal Trade Commission classifies franchisees,...

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