Wingfoot
11-11-2006, 06:15 PM
I filed a wage claim, former employer agreed that they owed unpaid wages, state sent a demand letter, did a levy on company bank accounts and was able to collect $48 of the $7,400 owed. The State of Texas filed a lien against the company on my behalf.
Question: The company (A Texas Corporation) is owned by one individual and is the only signer on the payroll account. Is this individual personally liable for the unpaid wages?
Texas709
11-13-2006, 05:02 AM
What you are asking has to do more with corporate law, which is a specialized field, and doesn't have a lot of straight answers. In all likelihood, the corporation for whom you worked is liable for wages as a corporation. The structure of the corporation would determine the liability of the individual officers, directors, or owners. If the corporation is a standard corp., an LLC (limited liability corp), or a limited partnership, it was formed to limit the liability of individuals, and the owner(s) wouldn't be personally liable.
If it's what is known as an "S-Corp", the owner may be. A good hint as to how the corporation is chartered is in the styling of the name on the demand letter or the lien. Who is named? Is there a reference to the owner, in his individual capacity?
You can also get ownership information from the Secretary of State in Texas.
BTW, it doesn't matter who signs payroll (or any other) checks.