Patel v. 7-Eleven, Inc., No. 23-1043 (1st Cir. 2023)
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The First Circuit certified to the Massachusetts Supreme Judicial Court (SJC) the unresolved question of what is meant, in the context of a franchise agreement, by "performing any service," as that phrase is used in the Massachusetts Independent Contractor Law (ICL), Mass. Gen. Laws ch. 149, 148B(a).
Plaintiffs, owners and operators of 7-Eleven franchises in Massachusetts, filed a putative class action against 7-Eleven, Inc. for alleged violations of the Massachusetts ICL, the Massachusetts Wage Act, and the Massachusetts Minimum Wage Law, challenging 7-Eleven's decision to classify them as independent contractors rather than employees. The district court ruled in favor of 7-Eleven and then, after remand, ruled for 7-Eleven again. At issue was whether Plaintiffs performed "any service" for 7-Eleven under the Massachusetts ICL. The First Circuit certified to the Massachusetts SJC the following question: Do Plaintiffs perform "any service" for 7-Eleven within the meaning of the Massachusetts ICL where they perform various contractural obligations under their franchise agreement and 7-Eleven receives a percentage of the franchise's gross profits.
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