Reynolds v. Bement, 107 Cal. App. 4th 738 (2003)

In this class action lawsuit brought by shop managers and assistant shop managers of Earl Scheib, Inc., the managers asserted that the officers and directors of Earl Scheib were personally liable for unpaid overtime in that they were “employers” within the meaning of Industrial Welfare Commission Wage Order No. 9. The trial court sustained the officers and directors’ demurrer, and the Court of Appeal affirmed on the ground that the Wage Order and the Labor Code distinguish between “employers” on the one hand and “officers, agents, management and other individuals” on the other hand. The Court of Appeal further held that Earl Scheib’s officers and directors could not be liable for tortious acts related to the failure to pay overtime. Finally, the Court held that the unfair competition claim was properly dismissed because the employees had failed to allege that members of the public were likely to be deceived.