Owner can be personally liable for FLSA violations — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Owner can be personally liable for FLSA violations

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Here’s an important reminder for small companies and their owners: Don’t think that owners aren’t personally liable for wage-and-hour violations simply because they run their operations through a corporation or limited liability company. As the following case shows, employees can personally sue hands-on owners.

Recent case: Guillermo Vega sued his former employer, Peninsula Household Services, and the owner, Michael Goff, claiming he had not been paid the required overtime under California wage-and-hour law and the federal FLSA. He had worked for four years on a commission basis.

The owner sought to have the case against him tossed out. The court refused, saying the law was clear that a corporate owner who supervised work, set hours and otherwise controlled employees can be personally sued for wage-and-hour violations.  (Vega v. Peninsula Household Services, et al., No. 08-03815, ND CA, 2009)

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