An Unexpected Role For A Franchisor Principal

Law360, New York (October 3, 2013, 4:51 PM EDT) -- A recent case out of the U.S. District Court for the Western District of Texas upheld a jury finding that a franchisor’s principal was the employer of a former franchisee’s employee despite the fact that the employee’s own testimony made it clear the franchisor’s principal did not have direct control over the employee.

In Orozco v. Plackis,[1] the plaintiff filed an action under the Fair Labor Standards Act against Craig Plackis, founder and principal of the Craig O’s Pizza and Pastaria franchised restaurant chain. The plaintiff,...
To view the full article, register now.