The California Labor Code Does Not Impose Personal Liability on Corporate Officers for Unpaid Wages
14-March-2006

Jones v. Gregory, 137 Cal. App. 4th 798 (2006)
The Labor Commissioner sued Science Adventures (SA), and its Chief Executive Officer, William Gregory, for failure to pay 45 former employees. Relying principally on federal authority, the Labor Commissioner argued that Gregory fell within the meaning of ?employer? in various Labor Code wage provisions and Industrial Welfare Commission Wage Orders. In a bifurcated trial, the trial court entered judgment jointly and severally against SA and Gregory for unpaid wages, unpaid vacation time, business expenses, interest, and waiting time penalties. Gregory then filed an appeal, relying on the California Supreme Court?s recent decision in Reynolds v. Bement, 36 Cal.4th 1075 (2005). The Court of Appeal reversed and held that the plaintiffs? causes of action did not impose personal liability on a corporate agent for unpaid employee wages and expenses.

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