Can an employee/director be sued if a company defaults on payment obligations to employees?

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Can an employee/director be sued if a company defaults on payment obligations to employees?

I have been employed with a company for over 2 years. About 3 months ago I was promoted to a director position. The company is currently having financial problems and is unable to pay staff who leave the company. As part of my duties I hire on new employees. If the employees are not paid and sue, can they sue me? Will I face any IRS or legal trouble based on what the company does?

Asked on July 15, 2011 under Employment Labor Law, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Do you have an ownership interest in the company you work for, or you solely an employee? Is the company you work for a corporation or limited liability company?

If you are solely an employee and have no ownership stake in the company, you as an employee should have no liability issues for employees who are not paid their wages. Although an unhappy employee could always sue you for unpaid wages, whether the unhappy employee prevails against you in such a lawsuit if you are not the owner or one of the owners of the company is not a likely outcome.

Likewise, you should not personally face any IRS or legal trouble based upon what your employer does or not do based upon what you have provided in your question.


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