Tag Archives: individual liability

Illinois Judge Holds that Individual Liability Under FLSA Requires Both Ownership and Operational Control

The definition of an “employer” under the FLSA is, like a number of FLSA provisions, not well defined, as set forth in a long and thoughtful opinion from Judge Manish S. Shah of the Northern District of Illinois. Schneider v. Cornerstone Pints, Inc., 2015 U.S. Dist. LEXIS 166993 (N.D. Ill. Dec. 1, 2015). However, it … Continue Reading

Utah’s Highest Court Finds LLC Managers Were Not Employers Under State Wage Law

When small entrepreneurial ventures collapse, disputes sometimes arise regarding who constituted an “employee” of the business and whether they were paid proper wages.  As the venture has failed, the issue of individual liability often is raised.  In a new decision, Utah’s highest court clarifies that Managers of a limited liability company are not liable for … Continue Reading

Brooklyn Federal Court Rejects Allegation That Not-For-Profit Board President Was An Employer

Many courts, including the Court of Appeals for the Second Circuit, have ruled that under certain circumstances an individual can be a statutory “employer” under the Fair Labor Standards Act, liable for minimum or overtime wages usually along with a corporate entity.  The scope of such potential liability and the precise formulation of the “economic … Continue Reading

Supreme Court Declines Catsimatidis’ Invitation To Review FLSA Liability

Though the high court recently has accepted other petitions for certiorari on FLSA issues, today the Court declined Gristede’s owner and former NYC mayoral candidate John Catsimatidis’ request that the Court take up his case and review the imposition of individual liability imposed by the Second Circuit.  Catsimatidis v. Irizarry, 2014 U.S. LEXIS 1802 (2014).  … Continue Reading

Maine Judge Agrees with Colleague: No Individual Liability Under Maine Wage-and-Hour Law

While the definition of employer under the FLSA is broad, as the Court of Appeals for the First Circuit (encompassing Maine among other states) has noted, state law is not always consistent, as highlighted by a new federal court decision from Maine.  Saunders v. Getchell Agency, 2014 U.S. Dist. LEXIS 16728 (D. Me. Feb. 11, … Continue Reading

Massachusetts Supreme Judicial Court Issues Employee-Friendly Decisions

In two decisions issued this spring, the Supreme Judicial Court of Massachusetts, reversed decisions issued by Massachusetts lower courts and broadly interpreted the scope of Massachusetts wage law with respect to its extra-territorial reach and potential individual liability for violations. Taylor v. Eastern Connection Operating, Inc., 465 Mass. 191 (Mass. 2013); Cook v. Patient Edu, LLC, … Continue Reading

Second Circuit Finds Gristede’s Owner to Be Individually Liable “Employer” Under FLSA

Reviewing a district court decision issued two years ago, the United States Court of Appeals for the Second Circuit has affirmed a ruling finding John Catsimatidis, the CEO and owner of New York-area grocery chain Gristede’s (and a New York Mayoral Candidate), individually liable for wages under the FLSA based on the “economic realities” of … Continue Reading

Court Holds Minority Owner of Construction Business Not Employer Under FLSA

FLSA litigation against medium-sized businesses continues, and a common tactic  in such cases is to assert that one or more owners or managers of the business is the plaintiff’s "employer" under the statute, and thus individually liable for the allegedly unpaid minimum wage and/or overtime. See generally Herman v. RSR Sec. Servs., Ltd., 172 F.3d 132 … Continue Reading

SDNY – Executives Cannot Claim Unpaid Wages Under New York Labor Law, And Individual Liability Under Contract Claims Is Limited

Separated executives often assert wage claims following cessation of employment and big dollars are usually at issue. Important questions then arise, including principally: 1) whether the executive can assert a claim under the New York Labor Law; and, 2) just as importantly, who is responsible for any monies owed. A new decision issued by recently-appointed Judge Paul … Continue Reading

California Legislature Adds New Penalties For “Willful” Misclassification As Independent Contractors

California, like several other states including Massachusetts and New York, has historically been harsh on employers which abuse the independent contractor designation, classifying individuals who are integrated into their business and function as employees as contractors for the purposes of avoiding tax and wage costs. In fact, Federal Express’ now decade-long battle with courts and agencies … Continue Reading

New York Federal Court Finds Corporate CEO Individually Liable For Unpaid Wages

In the latest installment in a long running dispute regarding compensation of certain mid-level managerial employees at the Gristede’s chain of New York-area grocery stores, federal Judge Paul Crotty ruled last week that Gristede’s corporate CEO, John Catsimatidis, is an individually liable “employer” under the FLSA and New York Labor Law. Torres, et al. v. Gristede’s … Continue Reading

There Is No Personal Liability For Wage and Hour Violations: Is There?

Business owners, supervisors and managers performing services for corporate entities often believe that liability for wage and hour violations can be imposed solely on the incorporated entity.  To the contrary, as demonstrated by a recent New York Federal Court decision, various theories support individual liability under both federal and, in this case, New York State law. … Continue Reading
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