The Massachusetts Supreme Judicial Court recently held that individuals acting as board members and investors cannot be held personally liable under the Massachusetts Payment of Wages Law, M.G.L. c. 149, § 148, for a company’s failure to pay wages. Only board members or investors who also served as an officer or agent “having the management” of the company can be subjected to personal liability. This is a significant decision, given that the Payment of Wages Law carries substantial penalties for noncompliance.
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