Citing 7-Eleven’s pervasive control of its franchisees’ operations, a Camden, N.J., federal judge denied a motion by the convenience store chain to dismiss franchisees’ claims that they are employees of the company and have been denied compensation and overtime pay in violation of the Fair Labor Standards Act.
In a suit against 7-Eleven by four franchisees, U.S. District Judge Renee Bumb of the District of New Jersey found the plaintiffs made a sufficient showing that they are employees to survive the company’s motion to dismiss claims under the FLSA and the New Jersey Wage and Hour Act. The franchisees’ assertion that they are employees was also supported by their allegations concerning the permanency of their relationship with the company, their integral role in the company’s business and their economic dependence on the company, Bumb said.
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