Owners Immune From Wage Claims: Appeals Court

Law360, New York (April 21, 2008, 12:00 AM EDT) -- Corporation owners and directors are not liable as employers for workers' unpaid wages when a company goes bust, a California appeals court has ruled.

Upholding the judgment of a lower state court, the Court of Appeal of the State of California, First Appellate Division, Division One, found Wednesday that the principals of three clothing manufacturing plants were not personally responsible for the companies' failure to pay garment workers' wages during lean times.

The court found that the corporations – as employers – owed the wages. The...
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