Entrepreneurs Beware of Personal Liability for Wage & Hour Violations


Is Groupon’s June 3 announcement of its intent to launch an IPO a sign of another looming “tech bubble” or an “entrepreneurial renaissance”? Either way, entrepreneurs seeking to ride the next wave of technological innovation must be aware of the significant personal risks arising from failing to comply with wage and hour laws.

Can’t pay your suppliers or rent on the swanky new office space you rented to impress potential venture capital investors? If the business fails, at least the budding entrepreneur might be able to avoid or limit personal liability for these unpaid debts. Not so for unpaid wages owed to employees.

Under the FLSA and most state wage and hour laws the entrepreneur will be personally liable not only for the amounts owed to employees, but also for attorney’s fees, liquidated damages, statutory penalties and in extreme cases could be subject to criminal prosecution.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Franczek Radelet P.C. | Attorney Advertising

Written by:


Franczek Radelet P.C. on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.