Personal liability for wage and hour violations: a cautionary tale

Generally, California doesn't permit employees to file claims against agents of the employer, such as managers or owners. California Labor Code Section 558.1, however, states an employer or "other person acting on behalf of an employer" who violates (or causes to be violated) California's wage and hour laws may be held liable as the employer.

The Labor Code defines "other person acting on behalf of an employer" as a natural person who is an owner, director, officer, or managing agent of the employer. For the first time, a California appellate court has provided guidance on the level of involvement an "other person" must have to be liable under Section 558.1.

Independent contractor agreements

White Communications, LLC, hired Jackie Oneal Usher and Eric Leung, as independent contractor service technicians. Usher worked with the company from October 2012 until approximately August 2014. Leung worked for the company between 2010 and 2013.

Usher and Leung were contracted with the company but worked exclusively doing installations for DirecTV, which indirectly controlled the company and authorized it to hire service technicians to install its satellite systems according to its specifications. White Communications required Usher and Leung to sign an "Installation Services Agreement," which created the independent contractor relationship.