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Owners Can be "Personally" Liable for California Overtime Pay

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  • Owners Can be "Personally" Liable for California Overtime Pay

    Under 558 (a) of the California Labor Code, owners of companies may be held personally liable for failure to pay overtime wages. Many think that a corporate veil will prevent individual liabilty, but this may not be the case especially if the employee is employed within one year of the date the lawsuit is filed.
    Walter

    www.California-Labor-Law-Attorney.com
    "Wage and Hour Class Action Attorneys"

    Disclaimer: The above correspondence does not constitute legal advice nor establish an attorney-client relationship. You should seek the advice of independent legal counsel before relying upon, acting upon or not acting upon any information contained in this correspondence.

  • #2
    Walter; does this apply to all forms of corporations?
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      California Labor Law Attorney

      I believe it does subject to certain restrictions ie. does the owner exercise control over the employees wages, etc.
      Walter

      www.California-Labor-Law-Attorney.com
      "Wage and Hour Class Action Attorneys"

      Disclaimer: The above correspondence does not constitute legal advice nor establish an attorney-client relationship. You should seek the advice of independent legal counsel before relying upon, acting upon or not acting upon any information contained in this correspondence.

      Comment


      • #4
        Thank you!
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

        Comment


        • #5
          California Overtime Law

          You are welcome. Many defense attorneys attempt to remove the individuals from overtime cases under several governing cases (which incidentally do not govern in many situations), but a saavy plaintiff attorney will be able to keep them in the case if the circumstances are right and if they deserve to remain in.
          Walter

          www.California-Labor-Law-Attorney.com
          "Wage and Hour Class Action Attorneys"

          Disclaimer: The above correspondence does not constitute legal advice nor establish an attorney-client relationship. You should seek the advice of independent legal counsel before relying upon, acting upon or not acting upon any information contained in this correspondence.

          Comment


          • #6
            California labor law attorney

            Reynolds v. Bemont is the case defense attorneys usually cite. We have won on demurrer in many instances when challenged but as you know judges are unpredictable.
            Walter

            www.California-Labor-Law-Attorney.com
            "Wage and Hour Class Action Attorneys"

            Disclaimer: The above correspondence does not constitute legal advice nor establish an attorney-client relationship. You should seek the advice of independent legal counsel before relying upon, acting upon or not acting upon any information contained in this correspondence.

            Comment


            • #7
              There is a similar law in new york for small corps.

              Comment


              • #8
                Interesting. So let's say in my situation, someone is late and I work 15 minutes of overtime and write it on the master schedule since that is our only record of hours worked (employers refuse to use time clocks on our registers or time cards) - if they knowingly ignore those 15 minutes even when they specifically asked me to work them, they are held liable and not the corporation they work under?

                All my OT is being ignored and is unpaid, or paid as straight time. I may say something in the future, I just wonder how much will fall on them as owners versus the actual corporation.

                Comment


                • #9
                  a labor attorney would need to see specific facts to be sure.
                  Walter

                  www.Californialaborlaw.info
                  "California Wage and Hour Class Action Attorneys"

                  Disclaimer: The above correspondence does not constitute legal advice nor establish an attorney-client relationship. You should seek the advice of independent legal counsel before relying upon, acting upon or not acting upon any information contained in this correspondence.

                  Comment

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