Suing the Boss Personally: Labor Code 558.1 and Owner Liability

The corporate shield is thinner than owners believe. California law reaches the individuals who caused wage violations — owners, directors, and managing agents alike.

What California Law Says

Labor Code section 558.1 imposes personal liability on any natural person acting on behalf of the employer who violates or causes violations of the core wage statutes: minimum wage, overtime, breaks, expense reimbursement, wage statements, and final pay.

How to Fight Back, Step by Step

1. Identify the decision-makers: who set pay policy, approved payroll, and answered complaints.
2. Name them individually in your Labor Commissioner claim alongside the entity.
3. Gather proof of their role — signatures on checks, policy emails, ownership filings.
4. Pursue judgment against the individuals and entity jointly.
5. Collect against personal assets when the entity is dry.

Common Questions

The owner says only the corporation employed me. Does 558.1 still apply?

Yes — it targets natural persons who caused violations while acting for the employer, precisely to defeat that argument.

Does personal liability survive the company’s bankruptcy?

The individual’s liability is separate from the entity’s, so the corporate bankruptcy does not automatically discharge the owner’s exposure.