April 20, 2025
Volume XV, Number 110
Home
Legal Analysis. Expertly Written. Quickly Found.
HB Ad Slot
HB Mobile Ad Slot
Utah’s Highest Court Finds LLC Managers Were Not Employers Under State Wage Law
Sunday, February 22, 2015

When small entrepreneurial ventures collapse, disputes sometimes arise regarding who constituted an “employee” of the business and whether they were paid proper wages.  As the venture has failed, the issue of individual liability often is raised.  In a new decision, Utah’s highest court clarifies that Managers of a limited liability company are not liable for allegedly unpaid wages on the basis of that role.  Heaps v. Nuriche, LLC, 2015 UT 26 (Utah 2015).

The court agreed with the individual managers of the failed LLC that they did not “qualify as employers under the plain language of the [Utah Payment of Wages Act] . . . [because plaintiffs’] proposed construction of the statute conflicts with other provisions of Utah law that limit the liability of LLC and corporate officers.”  Because “any supervisory power” the managers may have exercised “arose from their positions as officers and agents of [the LLC] – not as direct employers . . . [and] the managers did not personally employ [plaintiffs],” they were not liable.  The court further observed that its conclusion was “buttressed by long-accepted principles of Utah corporate law.”

Those starting or unwinding business ventures must pay attention to applicable law assessing potential liability.

 

 

HTML Embed Code
HB Ad Slot
HB Ad Slot
HB Mobile Ad Slot

More from Jackson Lewis P.C.

HB Ad Slot
HB Mobile Ad Slot
 
NLR Logo
We collaborate with the world's leading lawyers to deliver news tailored for you. Sign Up for any (or all) of our 25+ Newsletters.

 

Sign Up for any (or all) of our 25+ Newsletters