Corporate Officers And Directors Are Not Liable For Unpaid Wages Owed By Employer
Reynolds v. Bement, 36 Cal. 4th 1075 (2005)
Steven Reynolds, a former manager for Earl Scheib Inc., brought this class-action lawsuit against the individual shop managers and assistant shop managers of Earl Scheib, an automobile painting business. Reynolds alleged that defendants misclassified him and other employees as exempt employees, thus depriving them of statutory overtime compensation. The managers demurred to the complaint on the ground that California law insulates them from individual liability for economic harm that Reynolds’ employer (Earl Scheib Inc.) may have caused. The California Supreme Court concluded that neither the applicable wageand- hour statutes nor common law principles could be construed to impose liability on individual corporate agents for the acts of the employer.
