Cook v. Patient Edu, LLC

Employee filed suit against Employer, a limited liability company (LLC), and two of its managers under the Massachusetts Wage Act for failing to pay compensation that was allegedly owed to him under an employment contract. The superior court granted the managers' motion to dismiss, concluding that the Wage Act does not, by its plain language, impose individual liability on the managers of an LLC. The Supreme Court vacated the judgment of dismissal, holding that a manager who "controls, directs, and participates to a substantial degree in formulating and determining" the financial policy of the business entity may be a person having "employees in his service" under the Wage Act, and thus may be civilly or criminally liable for violations of the Act. Remanded. View "Cook v. Patient Edu, LLC" on Justia Law