4 ms·
Is it illegal to not be able to pay wages because the company's bank melted down?
by plonk 4y ago
Is it illegal to not be able to pay wages because the company's bank melted down?
- robbiet480 4y agoReading the law with the strictest interpretation says to me (IANAL): yes
- etothepii 4y agoWhy wouldn't they just resign as a director in that case?
- lovich 4y agoI was unaware that after having committed a crime, that you could merely resign and say it’s not your problem anymore.
- kevin_thibedeau 4y agoBut these are elites. Can't be prosecuted if no prosecutor will bother to apply the law fairly to everyone.
- tedunangst 4y agoResign on payday.
- lovich 4y agoI suppose if you were about to h it a pedestrian while driving your car you could always bail out and claim you weren’t in charge of the vehicle, although that might be a bad example given Tesla’s shenanigans. The government isn’t that simplistic that they’d accept that as a legal defense if they were going to enforce the law. Possibly if the executive could prove that they were defrauded by another exec or vendor with liability and they resigned as soon as they had information to that effect which coincidentally was on pay day, they could pull it off. Even then though as a corporate officer they have liability over how the company operates when they choose the people to do the job. As the other poster pointed out the liability for payroll pierces the corporate veil and that means they can’t just bail out and use the corporation as a legal shield.
- twic 4y agoProsecutors hate him! Learn this founder's one weird trick for evading justice.
- etothepii 4y agoSurely the crime would only be not paying your staff. No crime was committed before that occurs.
- martincmartin 4y agoAs the OP says, yes. The CEO then needs to sell their house and use the money to pay wages.
- smabie 4y agoWhy the CEO? They just an employee too right
- shuckles 4y agoBoard members and executives are special actors in a corporate structure.
- consumer451 4y agoAhhhh. So maybe this explains why David Sacks is absolutely foaming at the mouth on twitter at the moment? Crunchbase says he sits on quite a few boards. He even managed to use the occasion to throw Ukraine under the tank treads, again.
- muzz 4y agoSacks was playing the role of crisis actor so perfectly. He, Tan, and others really learned Rahm Emanuel's advice of "never let a crisis go to waste"
- anon291 4y agoNo. A CEO is a corporate officer.
- decodebytes 4y agoThat is only if they want to keep the company operating? I
- dragonwriter 4y agoYes. Rather, it is illegal to not pay wages timely. It is more illegal to do it intentionally/wilfully vs. not, but it is illegal in any case.
- ddtaylor 4y agoIt means damages are owed. In many states unpaid wages must be compensated at a multiple of the missed wage, like in Oregon it is 3X.
- abeppu 4y agoSo ... San Francisco USD has had payroll system issues for more than a year which have continued to cause staff to sometimes not be paid, and sometimes be underpaid. robbiet480 said that the _corporate_ veil is pierced and so manager and investors are personally on the hook for SVB-related payroll issues. Should school principals, the superintendent or London Breed be personally on the hook for making up shortfalls? Are they literally committing a crime every pay cycle that the bugs in the payroll system continue? https://www.kron4.com/news/bay-area/sfusd-still-struggling-with-payroll-teachers-not-receiving-accurate-pay/ https://www.kron4.com/news/bay-area/sfusd-still-struggling-w...
- deleted 4y ago[deleted]
- benglish11 4y agoThe school district isn’t a corporation it’s part of government. As we all know the government gets to make and enforce its own rules.
- Dylan16807 4y agoBeing personally liable doesn't mean you committed a crime.