Ron Schwartz is an attorney with Katz, Friedman, Eagle, Eisenstein, Johnson & Bareck, P.C., who represents employees with overtime claims. Call (312) 263-6330
This page is for informational purposes only and should not be construed as legal advice regarding federal and State of Illinois overtime laws.
Owner-Manager Liability
Under federal law, Fair Labor Standards Act (“FLSA”) and Illinois law, an individual can be responsible for paying overtime due to employees. Under the FLSA, an employer is defined as “any person acting directly or indirectly in the interest of an employer in relation to an employee.” In Illinois, the definition of an employer is similar: “any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee, for which one or more persons are gainfully employed on some day within a calendar year.”
Lawsuit Against Owner or Manager
In plain English, this means that the individual who sets the terms and conditions of employment can be sued in addition to the employer. Generally, this means that if an owner or manager directs the work that an employee does or sets the wages of the employee that those individuals can be sued. Unlike most other situations, the person suing an owner of the corporation does not have to “pierce the corporate veil” to hold the owner liable for overtime wages. If the corporation goes bankrupt, the individual owner or manager still has liability for the amount of overtime owed to workers.
Call Ron Schwartz at (312) 263-6330 about a consultation regarding your overtime claim.
Revised: 12/20/2010
Nothing on this attorney web site should be understood as offering legal advice regarding overtime, FLSA law or any other legal subject.
