Top Court in Massachusetts Reaffirms “ABC” Test to Determine Independent Contractor Status

March 25, 2022

As discussed earlier, the Plaintiffs in Patel v. 7-Eleven, franchise owners of the national corporation, allege they are employees of the national corporation, rather than independent contractor owners, based upon the provisions of their franchise agreement.



Pursuant to Massachusetts law, a Court has the ability to look into the actual duties performed by a person to determine whether they are an employee or independent contractor regardless of the language contained in the contract. A court will look at issues such as control, whether the service is performed outside the usual course of business for the employer, and whether the individual is customarily engaged in an independently established trade. Ultimately, the determination boils down to control. If the parent corporation controls the individuals work, they are an employee. If not, they are an independent contractor.


The Supreme Judicial Court’s (“SJC”) ruling is based upon a request by the First Circuit Court of Appeals to interpret state law. The First Circuit was hearing the case because, as part of that appeal, the First Circuit asked the SJC for its opinion on whether the Massachusetts ABC test even applies to a franchisor-franchisee relationship, or, whether the case should be analyzed using the Federal standing set forth in the FTC Franchise Rule.


The SJC stated that the Massachusetts ABC test should apply, and not the FTC Franchise Rule.

As a reminder, worker misclassification can have serious financial impacts to an employer. If franchise owners are employees of the parent corporation, there could be many employment laws implicated, including the Massachusetts Wage Act, earned sick time, tax issues, unemployment insurance, and Massachusetts Paid Family Medical Leave, among other protections granted to employees under state and federal law.  Corporations should be mindful in how they classify their workers.


If you have any questions regarding worker classification, please contact the attorneys at The Royal Law Firm, LLP; (413) 586-2288.

By The Royal Law Firm November 5, 2025
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September 25, 2025
Starbucks is facing a new wave of litigation, in this instance over its workplace dress code. Employees in California, Colorado, and Illinois allege that the Company’s updated policy forced them to purchase clothing items out-of-pocket without reimbursement, raising questions about employer obligations under state expense reimbursement laws. The Lawsuits On September 17, 2025, employees in Illinois and Colorado filed class-action lawsuits, while workers in California submitted complaints to the State’s Labor and Workforce Development Agency. If the Agency declines to act, those workers intend to pursue their own civil claims. The lawsuits are backed by the union organizing Starbucks workers, and plaintiffs argue that requiring employees to buy specific uniform items without full reimbursement violates the states’ statutes. Under laws in California, Colorado, and Illinois, employers must cover necessary business expenses, which can include uniforms or clothing mandated by a dress code. What the Dress Code Requires The revised policy, implemented in May 2025, requires employees to wear a solid black shirt (short or long sleeves, but not sleeveless or midriff-bearing) underneath their signature green apron. Pants must be khaki, black, or denim, and shoes must be in muted tones such as black, gray, navy, brown, tan, or white. The policy also forbids “theatrical makeup” and visible face tattoos, prohibits nail polish and tongue piercings, and limits workers to one (1) facial piercing. In an effort to offset the change, Starbucks provided two shirts free of charge to each employee. Workers contend this was not enough, since multiple additional items were required to comply with the policy. Court documents show that some employees who failed to follow the dress code were subject to verbal warnings or sent home before starting their shifts. Worker Claims One plaintiff, Shay Mannik, a shift supervisor in Colorado, reported purchasing four black T-shirts, compliant shoes, and jeans to meet the dress code requirements. Despite these costs, Mannik claims they were never reimbursed. “It’s unfair that a billion-dollar company puts this burden on workers already struggling with unpredictable hours and understaffed stores,” Mannik stated through attorneys. Starbucks’ Response Starbucks defended the policy as a way to “deliver a more consistent coffeehouse experience to our customers and provide our partners with simpler and clearer dress code guidance.” The Company emphasized that it issued two free shirts to employees to prepare for the change. Key Considerations for Employers The Starbucks litigation underscores several important lessons for businesses:  Uniform Policies May Trigger Reimbursement Duties. Even when employers provide some clothing, state laws may still require reimbursement if employees must make additional purchases. State Laws Differ. California, Colorado, and Illinois all impose expense reimbursement obligations, but requirements vary, and enforcement can be aggressive. Here in Massachusetts, an employer does not need to pay for or reimburse an employee for general clothing, such as khakis, a black shirt, and black shoes, since these are ordinary items that can be worn outside of work. If the employer requires a specific style, brand, or logo (making the clothing a true uniform) then the employer must provide or reimburse for it and cover the cost of maintenance if special cleaning is needed. The only exception for ordinary clothing is if the cost would reduce the employee’s pay below minimum wage. Policy Rollouts Should Weigh Legal Risks. Employers introducing or revising appearance standards should carefully evaluate potential compliance costs, both financial and reputational. Takeaway The lawsuits against Starbucks will test the boundaries of state reimbursement laws and may influence how courts interpret employer obligations regarding dress codes. For companies, this case highlights the need to review policies proactively and ensure expense reimbursement practices comply with applicable state requirements. At The Royal Law Firm, we advise businesses on preventive compliance and represent employers when disputes arise. Our team’s focus on business defense ensures that policies are both operationally effective and legally sound. The Royal Law Firm LLP is a woman-owned, women-managed corporate law firm certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.