The IRS, various cash-strapped state and local agencies, members of Congress and the Obama administration are all engaged in an effort to crack down on the misclassification of independent contractors. In many cases, small businesses are the focus of these efforts, something I recently wrote about for Bloomberg/BusinessWeek.
Now, it looks like franchises are getting caught up in the issue. In March, a federal district court in Boston found that franchisees of Coverall North America, a commercial-cleaning franchise based in Boca Raton, Fla, are employees, not independent contractors. In 2007, franchisees sued Coverdell, asking for such things as minimum wage and overtime.