September 1, 2016

Personal Liability for Wage and Hour Violations Greatly Expanded Under California’s Fair Day’s Act

Personal Liability for Wage and Hour Violations Greatly Expanded Under California’s Fair Day’s Act

Under California’s new Fair Day’s Pay Act (SB 588), not to be confused with California’s Fair Pay Act addressing gender wage differentials, an aggrieved employee’s wage theft claim may be brought against the employer, as well as any “other person acting on behalf of an employer,” greatly expanding owner and executive personal liability for wage and hour violations in California.

The new law takes effect January 1, 2016, and extends to owners, directors, officers, and managing agents of the employer. These individuals may be personally liable for violations of any provision regulating minimum wages or hours and days of work under the Industrial Welfare Commission’s Wage Orders.

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