Can an executive be found personally liable for a company’s failure to pay minimum wages and overtime?
Yes. Unlike other debts owed by a company, unpaid minimum wages and overtime can often be recovered from certain high-level company officials as well as from the company. As the U.S. Court of Appeals for the Second Circuit recently ruled, the Fair Labor Standards Act (FLSA) defines the term “employer” based on “economic realities” to include not only the offending company but also high-level managers who determine how the business treats its employees. See Irizarry…