Almost everyone is aware that a company or corporate entity can be found liable for violations of employment laws. Oftentimes, however, owners and management officials are surprised to hear that these laws provide for individual liability as well.
The federal Family Medical Leave Act (FMLA) regulations, for example, define an “employer” as including “any person who acts directly or indirectly in the interest of an employer to any of the employer’s employees.” Citing these regulations, the United States District Court for the Eastern District of Pennsylvania recently allowed a terminated employee’s lawsuit alleging violations of the FMLA to go forward against (among others) the former employer’s plant manager and human resources manager.
Similarly, a recent case out of the Southern District of New York affirmed that corporate officers, principal shareholders and management officials involved in wage and hour decision-making can all be held personally liable for violations of the federal Fair Labor Standards Act (FLSA).
Human Resources managers and other management officials must now realize that employment law violations can result in more than just angry bosses – they can lead to individual liability as well.