Employment attorneys are preparing for a potential influx of misclassification litigation following the Massachusetts Supreme Judicial Court’s ruling last month that the so-called ABC test in the independent contractor statute applies to the franchisee-franchisor relationship.
In Dhananjay Patel v. 7-Eleven, a group of plaintiffs entered into a franchise agreement with 7-Eleven as independent contractors who would operate the branded convenience stores “around the clock, stock inventory sold by 7-Eleven’s preferred vendors, utilize the 7-Eleven payroll system to pay store staff, and adhere to a host of other guidelines,” the court’s opinion said.
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