Individuals Beware! California’s Fair Days Pay Act Imposes Personal Liability on Individuals for Wage and Hour Violations

Individuals Beware! California’s Fair Days Pay Act Imposes Personal Liability on Individuals for Wage and Hour Violations

Spring 2018 Article

The agency theory of liability in the employment context takes on new meaning with the induction of California Senate Bill 588 (the “Bill”), known colloquially as California’s “Fair Days Pay Act”.  As a result of the Bill, the corporate form no longer provides immunity from personal liability for individuals who (through their companies) commit wage and hour violations. While the Bill went into effect on January 1, 2016, the implications are still yet to be fully determined.