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2nd Circuit: CEO can be personally liable for FLSA violations

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in Human Resources,Overtime Labor Laws

by Andrew D. Bobrek, Esq., Bond, Schoeneck & King, Syracuse

Here’s a bit of news you may want to pass on to company executives when explaining why they must comply with the letter and the spirit of the Fair Labor Standards Act (FLSA). Tell them they aren’t just putting company assets at risk, but also their own.

The 2nd Circuit Court of Appeals recently ruled that the chairman and CEO of the New York City supermarket chain Gristedes could be held personally liable for damages arising from FLSA claims brought by his em­­ployees.

Spe­­cifi­­cally, the 2nd Circuit ruled that Gris­­tedes Chairman and CEO John Catsimatidis was an “employer” within the meaning of the FLSA, and could therefore be held jointly and severally liable along with Gris­­tedes for such damages.

Judgment, default, liability

At the time of the case, Gristedes operated about 35 supermarkets in the New York City area, and em­­ployed approximately 1,700 ­worker...(register to read more)

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