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  Reynolds v. Bement, et al., Cal. Sup. Ct. No. S115823 (Cal. August 11, 2005) Littler Mendelson, P.C. - August 18, 2005 In the California Supreme Court’s long awaited Reynolds v. Bement opinion, the court concluded that individuals who were either officers or directors of a company and who were shareholders of the company were not liable for the alleged failure to pay overtime to the company’s employees. Though the court’s decision will bring a sigh of relief to individual defendants in some pending matters, individual liability for the failure to pay wages is still a possibility under provisions of the Labor Code that were not at issue in Reynolds, under changes made to the Labor Code after the Reynolds case arose, under general corporate law principles, and under the federal Fair Labor Standards Act (FLSA).  Corporate Officers Not Personally Liable for Employer's Unpaid Wage Debt.Jackson Lewis LLP - August 16, 2005 The California Supreme Court has ruled unanimously that the state's labor laws do not impose personal liability on corporate officers and directors for unpaid wages owed by a corporate employer. This includes unpaid overtime pay based on the erroneous classification of workers as exempt employees.
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