Update on Orozco v Plackis: was franchisor’s principal the employer of franchisor’s employee? Fifth Circuit reverses — three takeaways
By John A Hughes and Stephanie Zosak
We reported in September 2013 about Orozco v Plackis, a case out of the US District Court for the Western District of Texas in which the plaintiff (a cook in a franchised restaurant) filed an action under the Fair Labor Standards Act (the FLSA) against Craig Plackis, owner of the Craig O’s Pizza and Pastaria franchised restaurant chain. The plaintiff filed suit alleging that he was not paid overtime and minimum wage as required by the FLSA.
At the conclusion of the jury trial, the jury found, among other things, that Plackis was the plaintiff’s employer. Plackis then appealed to the US Court of Appeals for the Fifth Circuit.
The Circuit Court reversed the District Court’s denial of Plackis’s motion for judgment as a matter of law, holding that there was legally insufficient evidence for a reasonable jury to conclude that Plackis was the plaintiff’s employer under the FLSA and the ‘economic reality test’. Under the economic reality test, courts consider whether the alleged employer: (1) possessed the power to hire and fire employees; (2) supervised and controlled employee work schedules or conditions of employment; (3) determined the rate and method of payment; and (4) maintained employment records…
Click on the link below to read the rest of the DLA Piper briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Cross-border work and political tensions are dominating this year’s entries for Finance Team of the Year at The Lawyer Awards.
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work