Janitorial Co. Coverall Settles Wage Suit With Franchisees

Law360, New York (January 5, 2015, 6:52 PM EST) -- Custodial company Coverall North America Inc. and a class of 166 franchisees have settled a long-running wage-and-hour suit a week before arguments were to begin in the First Circuit, announcing an end to a case in which a federal judge had ruled the janitorial franchisees were employees under Massachusetts law.

The two sides on Wednesday reached their agreement to settle the class action, and on Friday asked the appeals court to remand the case to a Massachusetts federal court for settlement proceedings. The lower court in 2013 had rendered a $4.8 million judgment against Coverall after finding in favor of both...

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