Quote of the Day - By working faithfully eight hours a day, you may eventually get to be a boss and work twelve hours a day.
It was fun while it lasted, but it won't last long. The California Supreme Court ruled that directors and officers of companies cannot be held financially liable under California labor law for their company's failure to pay its employees overtime compensation. Without a dissent, the Court decided that former employee Steven Reynolds had not stated a cause of action against any of the eight people who were officers or directors of Earl Schieb.
The Court ruled that plain language of the California Industrial Welfare Commission's definition of employer does not expressly impose liability under section 1194 of the California Labor Code on individual corporate agents. The Justices thought that the code section did not define the term "employer." Good news for owners of companies out there. At least for now.
Don't rely on it, though. There is a new law, not in effect when Mr. Reynolds first filed suit, that permits employees to sue officers and directors for unpaid overtime. It's known as the "Sue Your Boss" law, and has yet to be tested in court.
It's a jungle out there.