Beware of Your actions

The Jackson Lewis Law Firm in a posting on the Employment Law Network email reports that more than just the corporation can be held liable for the actions of the firm. Reinstating the plaintiffs’ complaint for unpaid wages under the Fair Labor Standards Act, the federal appeals court in San Francisco has held that the Chief Executive Officer, Chief Financial Officer, and a manager responsible for labor and employment matters could be held individually liable for unpaid wages. Boucher v. Shaw, No. 05-15454 (9th Cir. Jul. 27, 2009). In this case, the employer was subject to a Chapter 7 bankruptcy proceeding. Stating that “the [employer’s] bankruptcy has no effect on the claims against the individual managers at issue here,” the Court reversed dismissal and returned the case to the district court for further proceedings.