A franchisor’s exposure to damages because of a federal district court decision that the franchisor misclassified its franchisees as independent contractors continues to grow. Late last week, the Massachusetts Supreme Court rules that Coverall’s accounts-receivable financing system and requirement that franchisees pay worker’s compensation insurance premiums violates state law.

In Awuah v. Coverall N. Am. Inc., 707 F.Supp.2d 80 (D. Mass. 2010),  a

Contributed by Tom Kent

In Massachusetts and elsewhere, the debate continues with respect to whether a franchisee is properly classified as an employee or an independent contractor.  Last year, in Awuah v. Coverall North America, Inc., the Massachusetts District Court ruled that Coverall’s franchisees were misclassified as independent contractors and should be classified