EmploymentQuestion 989 of 1605
Under California law, can an individual owner, officer, or managing agent be held personally liable for certain wage violations, not just the corporate entity?
a.No, personal liability is unconstitutional
b.Yes; Labor Code §558.1 allows individuals who are owners, directors, officers, or managing agents to be held personally liable for specified wage violations
c.No, only the corporation is ever liable
d.Only if the company has no insurance
Explanation
Labor Code §558.1 permits holding individuals, such as owners, directors, officers, or managing agents who are responsible for wage-and-hour violations, personally liable for those violations (including minimum wage, overtime, and wage-statement and expense-reimbursement failures). This means a contractor's principals cannot always hide behind the corporate form; personal exposure is possible for wage theft.
Law Reference: Labor Code §226; §558; joint liability of managersPractice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)