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,...
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