Personnel Liable for Wage Enforcement Fines

Two provisions in the Labor Code allow the Labor Commissioner to go after individuals for wage and hour violations.

First, Labor Code section 558.1 states that “any person acting on behalf of an employer” can be held liable when they violate (or causes to be violated) any of the following wage and hour laws:

• Minimum wages and any minimum wage provisions found in the Wage Orders
• Any provision regulating hours and days of work found in the Wage Orders
• Timely payment of wages (Labor Code section 203)
• The requirement to provide a pay stub/itemized wage statement (Labor Code section 226)
• Meal and rest break requirements (Labor Code section 226.7)
• Overtime requirements (Labor Code section 1194)
• Reimbursement of expenses incurred in the discharge of duties (Labor Code section 2802)

This statute limits the definition of “other person acting on behalf of an employer” to the following individuals:2

• Owner
• Director
• Officer
• Managing agent

Second, the Labor Commissioner's authority to conduct hearings to recover civil penalties includes hearings against an individual acting on behalf of the employer.3

You might be required to reimburse an employee who is assessed these fines, based on the state Labor Code's section requiring an employer to reimburse an employee for all necessary expenses or losses in direct consequence of job performance.4

1. Lab. Code sec. 558