Owner/Officer Liability for Wage Violations

Under the Fair Labor Standards Act, anyone who is an "employer" of an employee can be held liable for failing to pay proper wages to that employee. Employers should be aware, however, that the FLSA defines the term "employer" broadly to include not just the immediate corporate entity for which an employee works but also others in control including individual managers, officers and owners. In other words, individuals cannot count on limited liability protections for corporations to shield them from liability. For example, as discussed in the attached article, even after a corporate bankruptcy, individuals in the corporate chain of command can be held liable for unpaid wages.