7-Eleven’s franchise agreement can’t dictate contractor status, 9th Circuit says 

7 Eleven sign

From HRDive, Lisa Burden discusses a recent decision by the Ninth Circuit Court of Appeals which said that the franchise agreement did not determine how workers were properly classified. Lisa writes:

  • A trial court incorrectly focused on a franchise agreement between 7-Eleven and its franchisees when it considered a claim involving misclassification; instead, it should have considered the allegations regarding 7-Eleven’s actual control, the 9th U.S. Circuit Court of Appeals said, vacating the lower court’s judgment and reviving the lawsuit (Haitayan, et al. v. 7-Eleven, Inc., No. 18-55462 (9th Cir. Feb. 27, 2019)).
  • In evaluating the plaintiff’s Fair Labor Standards Act (FLSA) and California state law claims, the court said “the parties’ label is not dispositive and will be ignored if their actual conduct establishes a different relationship,” citing an earlier ruling.
  • The court also noted the California Supreme Court’s new independent contractor test, which makes it harder for employers to classify workers as independent contractors – at least for claims arising under state law.

Read the full story at 7-Eleven’s franchise agreement can’t dictate contractor status, 9th Circuit says | HR Dive

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