Managers Beware: Can you be held personally Liable for wage and hour violations?

Bruce’s Summary: After spending over half of my HR career working in California, if there’s one area of state law that continues to amaze me it’s our state wage and hour laws and their ever-evolving potential impact on California employers both small and large. Whenever I’m in conversation with a client or potential client and the subject of wage and hour comes up, my first question is; do you have an employment attorney or know of one? You can guess the next questions asked.
The attached article is a great example of why such a conversation is even more critical today. The title speaks for itself. What does this mean? According to the author, a new labor code section has been added to California’s “A Fair Day’s Pay Act” which imposes personal liability for certain wage and hour violations. Personal liability is defined as, … “employer or “other person” acting on behalf of an employer” to include a “natural person who is an owner, director, officer, or managing agent of the employer.”
The question here is are you or are you not a “managing agent?” This is a question each of us needs to ask and if not sure, do some research on. My blog can’t answer that question for each person, there are too many individual variables. As HR Professionals the ball is in your court to do the research for yourself and your organization to determine whether you fall within the category of a managing agent. Better to know now, then be surprised later, when it may be too late.
Now is also a good time to bring up that thing called training. Again, as HR Professionals, we need to ensure that all those who may fall under the definition of “managing agent” understand their role and yes, any potential liability they may be subject to within their scope of authority. None of the information contained herein should be construed as legal advice, nor are Calvin Associates consultants engaged to offer legal advice. If there is a need for legal advice, please contact and seek the advice of independent legal counsel.”

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