Your Manager Can be Individually Sued for Wage Theft

your manager could be sued for wage theft in colorado

Under the Colorado Wage Act, the company’s owner, a manager, or another individual with operational control who is directly responsible for the employing company’s failure to pay wages.

Some examples of employees not being paid their wages are as follows:

  1. When employees are called back to work during their lunch without recording it as work time;
  2. When employees are asked to perform work while clocked out;
  3. When employees change into work uniforms while clocked out;
  4. When an employer discourages overtime but the employee cannot finish his/her work in the time allotted; and
  5. When an employee works after business hours responding to emails, text messages, and phone calls.

Also, under Colorado law, a plaintiff seeking to recover directly from a corporate executive can do so if they can “pierce the corporate veil.” In order to do so, the court held, a plaintiff would need to prove:

  • The corporation is the “alter ego” of the officer;
  • The officer used the corporation to perpetrate a fraud; and
  • An equitable result will be achieved by disregarding the corporate form and holding the officer personally liable.

What does this mean? A company’s owner, a manager, or another individual with operational control can be sued for not preventing wage theft and ensuring the company follows Colorado wage laws.

If you have questions about Colorado overtime laws and other employment law issues, contact the employment law attorneys at Ramos Law today.

Colleen T. Calandra, JD, LLM

Colleen T. Calandra, JD, LLM

Colleen Calandra is a Denver employment law attorney offering assistance for employees in cases such as workplace discrimination, unpaid wages and wrongful termination.