Labor & Employment Law

Individual Liability

Labor and Employment Law Division Policy on Potential Individual Liability of Owners and Corporate Officers

In furtherance of the Department’s mission to make Virginia a better place to work, live and conduct business, a policy concerning the potential liability of Owners and Corporate Officers is being adopted to assure to the fullest extent of the law that employees in the Commonwealth receive full compensation for the wages they have earned.

Summary

For purposes of collecting unpaid wages from an employer on behalf of an employee, an individual business owner or corporate officer may be considered an “employer” under Virginia law and may be held personally liable for the unpaid wages “when acting directly or indirectly in the interest of an employer in relation to an employee” (Va. Code §40.1-2).  In these instances, if the wages are not paid, DOLI will enter Final Orders against both the business and the appropriate individual.

Policy

Policy Memorandum:  Individual Liability For Wage Claims – April 6, 2015  Acrobat Reader Icon