Employer Liability for Unpaid Wages

The Boss Doesn’t Get to Dodge Responsibility

If your employer failed to pay wages you earned, responsibility doesn’t end with a faceless company, individuals at the top can be held liable too. In New York, wage theft laws clearly state that owners, supervisors, and even third parties may be responsible, not just the employer entity. You shouldn’t have to chase a company that’s dissolved or sheltered behind layers of corporate structure.

At Horn Wright, LLP, our employment law attorneys have helped workers hold managers and executives personally liable for unpaid wages. That accountability matters. Too often, individuals hide behind corporate shells while workers go unpaid. The law, and we, don’t let that happen without consequences.

A court-ordered judgment against an individual is enforceable, and may mean real recovery. Whether it’s the CEO who signed your checks, the HR manager who withheld your overtime, or the business owner you never interacted with directly, you may still have rights to claim against them personally.

Understanding who you can hold accountable is as crucial as understanding what you’re owed. Legal tools exist, and we’ll help you use them.

Who Can Be Held Personally Liable in New York Wage Cases

Under New York Labor Law Article 19, an employee may recover unpaid wages from any “employer,” defined to include owners, officers, managers, and corporate control persons. This extends liability beyond the entity named in the pay stubs, even if that entity declares bankruptcy.

Courts have consistently held supervisors, business owners, and managing agents personally liable when they participated in wage decisions. If a manager approved payroll policies knowing they were unfair or illegal, they may owe you wages under § 198(1‑a), liquidated damages, and interest.

Federal courts applying the Fair Labor Standards Act (FLSA) and cases interpreting 29 C.F.R. § 791.2 also broaden the definition of “employer” to include individuals with authority over wages. That enables personal claims against decision-makers when FLSA violations occur.

Being able to name individuals reinforces legal recourse when companies dissolve or hide their assets. If you performed the work and someone on top broke wage laws, the law allows you to pursue them.

When Supervisors, Owners, or Managers Are on the Hook

Supervisors who schedule shifts, approve hours, or manage payroll processes can be held liable if they cause or permit underpayment. Courts interpret wages laws broadly, directing claims not only at employers, but at decision-makers who know or should know about wage violations.

If an owner regularly required unpaid pre‑shift work or unpaid meal‑break deviations, without compensation, they share liability. Many cases involve owners who structured company policies that systematically underpaid workers. Under New York law, that design can trigger personal liability.

Even managers who signed off on cheat sheets or misclassification schemes, like paying salaried workers straight without overtime, can be individually responsible. If their actions caused wage violations, they can be sued under NYLL § 198 for unpaid wages, double damages, and interest.

That accountability helps ensure fair treatment, employees can recover against those with real decision-making power, not just shell corporations.

How “Joint Employers” Can Also Be Held Accountable

In many industries, like construction, staffing, or franchising, more than one employer may claim control over wages. Under both New York and FLSA case law, companies that share supervisory control, scheduling, or compensation may be considered “joint employers.”

This means you can claim unpaid wages from multiple entities if they worked together to structure your pay or hours. For example, a staffing agency that assigns you to a franchise location may share liability with the franchise owner if both controlled your work conditions.

Federal law, such as the FLSA and DOL regulations, recognizes joint employer liability when both entities hold sufficient control over your employment. New York courts often follow that approach when deciding joint responsibility.

When your work is split across different “employers,” your wage claim should reflect all those who shared wage decisions. Recovering from just one party may leave significant unpaid sums unreachable.

What Happens When You’re Paid Through a Third Party or Staffing Firm

It’s increasingly common for workers to be paid through staffing agencies, temp firms, or contract entities, while working at another business. Under both New York law and FLSA standards, the staffing agency and host company can be jointly responsible for wage compliance.

If the staffing firm underpaid you, but the host employer dictated your hours and rates, you can pursue both. Courts often evaluate whether both parties had knowledge or control of wage decisions.

That opens multiple avenues for recovery. You may file claims against the staffing firm for payroll underpayment and against the host employer for field-level control issues. Treating them independently ensures your rights aren’t lost due to technical structures.

Even if one shuts down or claims they didn’t hire you directly, wage liability persists where control existed. The law ensures no employer can escape consequences by outsourcing your pay.

Building a Case That Tracks the Money Trail

Your wage claim must show where the money flowed, or didn’t. That means records of hours worked, who signed your checks, who approved payroll, and how changes in pay occurred. Detailed financial tracking strengthens liability claims.

Start by assembling pay stubs, bank deposits, staffing contract terms, and communication about hours or rates. Notice who signed your employer documents, those names may become liable. Look for internal memos or emails referencing pay practices, misclassification, or wage schedule changes.

Evidence of shared payroll systems, scheduling tools, or internal instructions helps show joint employer status. Courts will look at who controlled wages, classified workers, and set policy. Documentation that traces these decisions to individuals or entities is powerful.

Wage claims fail when documentation is thin, but succeed when the money trail is clear. Your recovery depends not just on proving hours worked, but showing who was legally responsible for paying you.

New York vs. Maine: New York Holds Individual Owners Liable More Easily Under the Wage Theft Prevention Act

New York’s Wage Theft Prevention Act makes it easier to hold individuals liable for unpaid wages than states like Maine. Under New York law, any employer or agent involved in wage decisions may be sued personally, even if the company is a corporation.

Maine’s laws shield individuals more than New York’s. In Maine, corporate structure often limits personal liability unless individual misdeeds can be proven. That legal barrier can prevent recovery when companies dissolve or hide assets under owner names.

New York’s broader definition of “employer,” including managers and owners under NYLL § 190, promotes accountability at all levels. That expansion of personal responsibility helps ensure that wage claims are enforceable across real-world structures.

In New York, you’re protected not just when a company mispays, but when those who directed the pay are held accountable. That ensures challenged wage theft can’t survive technical evasion.

Horn Wright, LLP, Knows How to Hold Employers Accountable

If your wages were stolen, or withheld, you deserve full recovery. At Horn Wright, LLP, our employment law attorneys hold liable not just the company, but the individuals behind wage decisions. We investigate corporate structures, supervisory hierarchies, and payment chains to identify all liable parties.

We construct case strategies targeting individuals and entities responsible under New York Labor Law, FLSA, or staffing intermediaries. We use wage data, internal communications, and policy review to trace liability and demand enforcement, even if the original employer claims insolvency.

You don’t just deserve back pay, you deserve justice that reaches the hands responsible. Work with a legal team known for securing personal liability outcomes in wage cases across New York. We’ll make sure those who owe you pay can’t hide.