Make sure you understand exactly when and how employees receive their pay. Reason: You could be personally liable for violating the Pennsylvania Wage Payment and Collection Law (WPCL).
Recent case: Samantha, who worked for a modeling agency, claimed she worked long hours without breaks, didn’t receive overtime pay and even spent several weeks in unpaid training before receiving a paycheck. She sued under the WPCL and included as defendants several owners of the company.
One argued that she wasn’t individually liable, but the court pointed out that the WPCL defined “employer” as “every person, firm, partnership, association, corporation, receiver….. and any agent or officer of any of the above-mentioned classes employing any person in this Commonwealth.” That meant the owner could be held liable. (Schneider v. The It Factor Productions, et al., No. 13-5970, ED PA, 2013)
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