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Joseph
Joseph, Lawyer
Category: California Employment Law
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Experience:  Extensive experience representing employees and management
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If DOL prders our Company (S Corporation) to pay unpaid overtime,

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If DOL prders our Company (S Corporation) to pay unpaid overtime, are the sharholders personally liable for what could be a huge debt since we are less than2 year old company?

Hello and welcome to JustAnswer.

 

I'm sorry to hear about your situation and hope I can help.

 

Have any individual shareholders been named in the wage claim for unpaid overtime or is just the name of the company listed as the defendant to the action?

Customer: replied 3 years ago.

We have not received the wage claim but the DOL was in our office and asked for payroll and company Tin & Articles of Incorporation. I am just preparing myself as a shareholder and officer of the company.

Hello Cecile,

 

Unless you are personally named as parties to the DOL action then you would not be personally liable to the Department of Labor or the plaintiffs for the amount of overtime and any penalties that the DOL may claim from you.

 

You will have to be separately named as an office and/or shareholder of the company to be held personally liable for the overtime wages that may be due.

 

I hope the above information is helpful.

 

Please let me know if you have any follow up questions.

 

If not, please remember to rate my answer positively so I get credit for my work.

 

Thanks and best of luck!

Joseph and other California Employment Law Specialists are ready to help you

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