In the past few years, it has become a common practice among many California companies to use temporary staffing agencies (or recruiters) to fill in various employment positions. The benefits of having temporary employees are great:  no payroll expenses, reduced labor cost, no training necessary, flexible schedule, no overtime, etc.

In one of the previous posts, we discussed how a shareholder or officer of a corporation can be personally liable for unpaid wages under the Federal Labor Standards Act (FLSA).  Alleging FSLA claims is not the only way for plaintiffs to impose personal liability on key corporate figures.

Many California business owners mistakenly believe that by incorporating a business or forming an LLC, they are fully protected from personal liability for unpaid wages owed to employees. California employers must be aware,