Case Serves as Reminder That Employers and “Others Acting on its Behalf” Individually on the Hook for Wage Violations

Business owners and managers are frequently unaware of the risk of individual liability for unpaid wages in California. However, the Court of Appeal, in Elsie Seviour-Iloff v. LaPaille, recently published an opinion with several important holdings relating to wage and hour claims pursued through the Labor Commissioner.

One standout from the opinion serves as a reminder that California Labor Code §558.1 grants discretion to an employee seeking unpaid wages to pursue individual liability against “Any employer or other person acting on behalf of an employer, who violates, or causes to be violated, any provision regulating minimum wages.”

This holding clarifies the issue presented to the Court whether the discretion to hold an employer or other person acting on its behalf individually liability belongs to the employee or the trial court.