7-Eleven Franchisees May Proceed With Claim They’re Employees

A federal district court shouldn’t have dismissed two suits by 7-Eleven franchisees that were based on claims they’re employees instead of independent contractors, the Ninth Circuit said.

In one suit, the franchisees claimed their classifications violate the Fair Labor Standards Act. In the second, they sought to enjoin implementation of 7-Eleven’s franchise renewal agreement requiring them to release their claims in the first suit.

The district court granted 7-Eleven judgment on the pleadings.

As to the first suit, the district court erred because it didn’t consider the plausibility of the franchisees’ claims, the unpublished appeals court opinion said.

The lower ...