Typically, owners, officers or managers of legal entities such as corporations or limited liability companies are not personally liable for the debts of the entity.

Exceptions exist. One key exception is that under law, an individual may be considered the “employer” for the purposes of liability for certain wage claims such as overtime and minimum wage violations under the Fair Labor Standards Act (FLSA). The FLSA is very favorable to employees and violators may be subject to a double penalty in addition to amounts owed, plus attorneys fees.

If an individual exercises overall authority over the aspects of the employment relationship that implicates FLSA compliance, that person may be liable. Hiring and firing power, financial control over the company, setting schedules, signing paychecks and tracking payroll are the kind of activities that can result in personal liability.

The Chapar Firm has significant experience in these cases. Please contact us if you have any questions or if you think you have a claim or need to defend a claim of this type.